Today’s end-users of derivatives are struggling with the rapid pace of accounting and regulatory changes. They are looking for strategic help and support from the counterparties they deal with. By helping to address these needs, derivative dealers have a unique opportunity to foster a closer strategic relationship with their clients and differentiate their sales efforts.
Our recognized domain expertise translates into a deep understanding of derivatives that dealers can leverage to deliver value-added risk management, derivative valuation and hedge accounting services to their end-user clients.
Benefits to Clients:
- Enhance offerings to your clients by adding hedge accounting disclosure, assessment, and measurement to your sales/trading and services. With Reval, you can furnish your clients with the back-office documentation and reporting they need to comply with hedge accounting standards.
- Gain the ability to put Reval hedge accounting experts on your telephone speed dial and have your derivative sales team be able to respond quickly and knowledgeably to your clients’ questions regarding compliance under hedge accounting regulations such as FAS 133 (ASC 815)/IAS 39 or fair value measurement under FAS 157(ASC 820)/IFRS 7.
- Use Reval's independent interest rate, foreign exchange, and commodity market data, published daily, to perform regression analysis, improving hedge effectiveness assessments and avoiding "small change" effects that are common when using the dollar-offset method.
- Help clients avoid the risk of restatement from auditors who disapprove of short-cut or critical terms match methods for effectiveness testing. Using Reval results in an improved ability to assess and measure hedge effectiveness over the hedge's life and satisfy your client’s auditors.
Key functionality that dealers can provide their clients include:
Post-Trade Maintenance
- Hedge accounting and regulatory reporting
- Retrospective effectiveness testing
- Independent valuations (CVA)
- Advanced regression analysis
- Risk management reports
- Inventory position reports
- Back-office event processing
- Ledger entries and balances
Hedge Evaluation
- Historical and pro-forma P&L reporting
- Revenue recognition
- Benchmark analysis
- Correlation analysis