The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Oracle Introduces Oracle Financial Services Hedge Management and IFRS Valuations

· Oracle Financial Services Hedge Management and IFRS Valuations is now available to help financial institutions easily comply with regulatory requirements for International Financial Reporting Standards (IFRS).

· New IFRS requirements for documentation and transparency make manual and siloed hedge accounting and valuation processes impractical. Given market volatility, hedge accounting must be a fully automated process.

· Emerging regulations, such as The Dodd-Frank Wall Street Reform and Consumer Protection Act in the United States, Basel III and the adoption of standards defined in IFRS, mandate tighter alignment between the controller, treasury and risk operations.

· As part of the Oracle Financial Services Analytical Applications suite that shares a common account-level relational data model and application architecture, Oracle Financial Services Hedge Management and IFRS Valuations facilitates such alignment.

Product Details

· Oracle Financial Services Hedge Management and IFRS Valuations helps financial institutions:

o Address regulatory requirements for IFRS, by classifying and computing the fair valuation of financial instruments, calculating effective interest rate,/ and computing and monitoring the effectiveness of hedging relationships;

o Create and tune hedging strategies for optimal capital utilization. Financial services institutions are able to monitor retrospective hedge effectiveness, apply what-if and stress scenarios to test prospective hedge effectiveness and readily handle hedge de-recognition processes; and

o Leverage a common computation engine for consistent valuations between treasury and accounting, and utilize common data quality and reconciliation processes across finance and risk applications.


Supporting Quotes

· “Driven largely by competition, market economics and performance pressures — and the need to continually innovate and reduce IT complexity– there’s a growing need to modernize core finance platforms with solutions that integrate the disciplines of financial and performance management, risk and compliance reporting. For the regulators and regulated firms, this produces more accurate, risk-aware valuations. Institutions can have these capabilities today and use this degree of straight-through integration to better compete in the market, while at the same time positioning for upcoming financial accounting and reporting changes,” said Michael Versace, director global risk, IDC, Financial Insights.

· “In an era of increased regulatory requirements and rapidly fluctuating market conditions, financial institutions need to provide accurate valuations more quickly than ever and take a proactive approach to their hedging strategies. Oracle Hedge Management and IFRS Valuations enables banks to efficiently manage hedging relationships for optimal capital utilization. As part of the Oracle Financial Services Analytical Applications suite, the product helps institutions better reflect risk management activities in financial statements, as increasingly required by regulatory requirements,” said S. Ramakrishnan, group vice president and general manager, Oracle Financial Services Analytical Applications.

Related content

WEBINAR

Upcoming Webinar: Trade surveillance: Deploying monitoring and surveillance capabilities for today’s new normal

Date: 8 April 2021 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes Let’s face it: The old ways aren’t coming back. A plethora of challenges brought on by the covid-19 pandemic, coupled with unrelenting market volatility and uncertainty, have pushed financial service firms to look for rigorous monitoring and surveillance solutions...

BLOG

FINOS and Goldman Sachs Release Legend Open Source Data Management Platform

In pursuit of data collaboration and standardisation across capital markets, the Fintech Open Source Foundation (FINOS) and Goldman Sachs have released Legend, the bank’s flagship data management and data governance platform. The source code for five of the platform’s modules is available from FINOS. Goldman Sachs contributed its PURE logical modelling language and Alloy platform...

EVENT

RegTech Summit Virtual

The RegTech Summit Virtual is a global online event that will be held in June 2021 with an exceptional guest speaker line up of RegTech practitioners, regulators, start-ups and solution providers to collaborate and discuss innovative and effective approaches for building a better regulatory environment.

GUIDE

RegTech Suppliers Guide 2020/2021

Welcome to the second edition of A-Team Group’s RegTech Suppliers Guide, an essential aid for financial institutions sourcing innovative solutions to improve their regulatory response, and a showcase for encumbent and new RegTech vendors with offerings designed to match market demand. Available free of charge and based on an industry-wide survey, the guide provides a...