JCRA, the London-based independent financial risk advisor, is launching a digital financial risk management portal for finance directors, portfolio managers and accounting teams.
The new portfolio valuation and hedge accounting Software-as-a-Service (SaaS) portal is named Ada and provides real-time access to debt and derivative portfolios and treasury and accounting reports. It takes its name from Ada Lovelace, the 19th-century visionary British mathematician and computer pioneer whose former London home at 12 St James’s Square is the European headquarters of JCRA.
The firm says that clients can use Ada to quickly access an overview of debt and derivative instruments in their portfolio or drill down into individual entities and instruments to the mark-to-market (MtM) value. Clients are further able to view individual instrument cash flows and LIBOR fixings, for both historical and projected values.
“Clients will have instant access to a range of risk management reporting tools,” according to JCRA’s release. “This includes projected MtM reports, which illustrate implied MtM projections by instrument; cash flow reports to show scheduled interest and principal payments for debt and interest rate derivatives; cost of funds and projected cost of funds reports; hedge ratio reports that show projections for hedged and unhedged debt positions as well as positions split by fixed and option based hedging. Clients can view all reports at group and entity level.
No more spreadsheets
Commenting on the launch of Ada, Jackie Bowie, CEO of JCRA, said: “We feel very fortunate to work in a building that is so closely associated with Ada Lovelace and are delighted to launch our new platform in her name. Thanks to Ada, accounting for derivatives via manual spreadsheets will be a thing of the past.
“Furthermore, Ada will strengthen clients’ existing treasury management systems and reduce the financial reporting burden for finance directors, portfolio managers and accounting teams who have to manage often complex derivatives portfolios. Ada will consolidate the vast quantity of derivatives information, positions and documentation into one easy-to-use, well-organised digital platform that provides a live and swift overview of transactions.”
The firm adds that Ada is an IFRS9, USGaap and UKGaap (FRS102) derivatives accounting solution that provides MtM reports with credit valuation adjustment (CVA) and a debit valuation adjustment (DVA).
Clients can make journal entries for cash flow hedge accounting instruments and non-designated hedges. They have cash flow hedge accounting support, which includes designations, regression testing and ineffectiveness measurement based on hypothetical derivatives. JCRA will also provide year-end quantitative disclosures including liquidity risk, market risk and long-short split.
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