Misys Summit provides powerful support for the creation, maintenance and accounting of hedge relationships as required by FAS133 and IAS39. Powerful valuation tools, hedging and accounting are already existing features and form the foundations of this module. Misys Summit provides a complete process to enable organisations to demonstrate compliance of both FAS133 and IAS39.
The solution handles all core requirements of both regulations including:
- Trade linkage that allows one-to-one, one-to-many and many-to-many relationships
- Powerful valuation tools including time/intrinsic value separation
- Hedge relationship effectiveness testing from prospective analysis to retrospective measurement
- Both fair value and cash flow hedge relationships are managed with features to control their creation and de-designation. Misys Summit also allows for hedging of anticipated and forecasted items
- Supports the use of hypothetical derivatives trades
- State-of-the-art analytical tools including Monte Carlo VaR, curve hedging and bifurcation of risk
- Mark to market functionality for all derivative products
- Tracks changes in fair value of assets and liabilities compared with the value of the corresponding hedge positions, over any user-defined time period
- Includes full reporting capability covering a wide range of criteria.
- Automatic generation of accounting entries throughout the lifecycle of each trade and hedge relationship (designated/de-designated)
We host regular user groups focused on this legislation ensuring that any future requirements can quickly be accommodated into Misys Summit.
