New York, April 22, 2009 – Amid international attention on fair value of derivative instruments, Reval, a global leader in derivative risk management and hedge accounting solutions and services, released today Reval® version 9.0 of its Web-based Software-as-a-Service (SaaS). Among the new features built upon the best practice functionality of Reval’s single-version product, are enhanced capabilities of credit-adjusted valuations that seamlessly integrate with hedge accounting standards.
“No matter which way the regulatory winds blow, corporate treasury and accounting teams around the world can feel confident that they will satisfy their auditors’ compliance requirements when using Reval to manage their derivatives—plain vanilla or complex,” says Jiro Okochi, Reval’s chief executive officer and co-founder. “Reval’s flexibility provides a variety of options for any user, under any accounting standard, to calculate fair values and assess and measure hedge effectiveness.”
Reval’s products and services help companies implement better approaches to effectiveness testing and reporting under stringent accounting rules such as FAS 133, IAS 39, IFRS 7, FAS 157, EIC 173, and FAS 161, maximizing control of operational risk and minimizing the possibility of financial restatements and other regulatory pitfalls. Reval’s hedge accounting solutions and derivative valuation services address the complex business, valuation, and accounting requirements for derivative management of interest rates, foreign exchange and commodities for over 225 clients from North America and the Europe, Middle East, Africa (EMEA) and Asia Pacific (APAC) regions.
“Corporations around the world continue to struggle with accurate credit-adjusted valuations and proper technical accounting of derivatives,” says Philip Pettinato, Reval’s chief operating officer. “Waiting for traditional treasury management system vendors to solve these issues is no longer a viable option. Companies require specialists and specialist systems like Reval to handle these complex issues.”
Credit-Adjusted Valuations Module
Continued enhancements to the Credit-Adjusted Valuations Module of Reval’s award-winning derivative risk management and hedge accounting software include new functionality that integrates and supports:
- Netting at ISDA agreement level for mark-to-market and hedge accounting, supporting netted counterparty credit risk positions.
- Client-defined policies for including credit in hedge accounting, allowing users to apply new credit adjustment methods to re-measure hedged items, exposures and hypothetical trades.
- Flexibility in using either bond yield spreads or credit default swap spreads in the calculation of credit adjustments, allowing users to choose the most accurate data for their valuations.
Standards & Compliance
Enhancements also enable companies to efficiently comply with global derivative accounting standards:
- EIC 173 – addition of Canada’s AcSB requirement that derivatives be measured at credit-adjusted fair value.
- FAS 157 – enhancements to accommodate netting and collateral in calculation of FAS 157 credit adjustments.
- FAS 133/157 – hedge accounting enhancements for the impact of FAS 157 credit adjustments on FAS 133 assessment and measurement.
- FAS 161 – addition of FAS 161 Doctor tool and enhancements to FAS 161 reports.
- DIG G16-Project Hedge Accounting – enhancements to keep track of long-term projects and allow users to efficiently manage a dynamic portfolio hedging long-term projects.
APAC and EMEA
- IAS 39/AASB 139 – enhancements to accommodate IAS hedge accounting treatment of FX rollover strategies and addition of debt trades as hedging instruments.
- India AS 30 – enhancements to meet Indian market requirements for interest rate derivatives.
- IFRS 7 – classification of loan and receivables and addition of IFRS 7 Doctor tool.
As recent events have added more focus on market and credit risk, Reval has made the following enhancements to its Risk Management module:
- Advanced counterparty exposure reporting, allowing users to more efficiently examine exposure to various counterparties “at the click of a button” and define short-term and long-term exposure limits to various counterparties.
- Ability to calculate greeks at the portfolio level, giving users a holistic view of risk across multiple asset classes.
Among the additions of Reval’s extensive instrument list are equity principal protected notes and swaps. These instruments utilize Monte Carlo simulation and stochastic volatility models.
The enhancements in Reval version 9.0 build upon the functionality of this single-version, best-of-breed product. They are designed to meet the evolving needs of a global community seeking more reliable and sophisticated solutions and services for the current market environment.
For more information, visit www.reval.com or email email@example.com.
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