Home » Treasury Management Systems » Dedicated Treasury Systems

Trinity TMS enhance their IFRS hedge accounting and Value At Risk

TrinityTMS and their range of partners have been providing treasury services for over 20 years. They have a large number of loyal and significant customers including:

Source & Copyright©2018 - Trinity

Trinity’s mission is to, “To markedly increasing the efficiency of your treasury department with best in class software and support.”

Partners

Trinity in their TMS solution feature and stress their use of partners. These include:

  • Consultant - Deloitte, inplenion, etc.
  • Tembit, a Hanse Orga company, specializing in financial software, healthcare software and CRM services
  • Management Data Praha
  • Wieltec
  • Omikron, ef & ef software.  

IFRS hedge accounting service

Trinity provides covers IFRS 9 compliant hedge accounting of IR hedges based on interest rate and cross-currency swaps along the full hedge life-cycle. Key features include:

  • Clean hedge relation workflow to ensure a proper, comprehensible and audit proof hedge documentation
  • Hedge fair value representation by automatically created hypothetical derivatives provides optimal effectiveness results
  • Posting logic taking into account also the difference of actual/aligned cost-of-hedging components allows IFRS 9 compliant cross-currency hedge accounting in the absence of a critical terms match.


Source & Copyright©2018 - Trinity

Valuation Service

The valuation of non-structured financial instruments - e.g. interest rate swaps, cross currency swaps, loans, bonds, FX forwards, FX swaps - is based on the discounting of cashflows, estimating floating cash flows using tenor-specific forward curves. Plus a number of other techniques including: 

  • yield curves calibrated from various benchmarking instruments, including basis spreads
  • bootstrapping algorithm includes a multi-curve bootstrapping procedure to allow a consistent yield curve setup for the discount curves, the tenor specific forward curves and cross-currency discount curves. Scenarios can be specified for all market parameters to simulate their impact on portfolio- or deal-level.

Additional modules for more complex structured financial products or other asset classes (e.g. Inflation, credit risk, equity risk, oil, gas, power, and other commodities) are available on demand.

Value at Risk (VaR) for interest rate risk and FX rate risk can be calculated using the variancecovariance approach or historical simulations. For accounting purposes, the measures CVA, DVA, FVA and ColVA can be computed on portfolio level, taking into account netting and collateralisation.


CTMfile take: Trinity is a mature TMS solution which continues to add depth to their functionality, e.g. the recent improvements to IFRS hedge accounting and in VAR management. The emphasis on the use of partners is unusual and is a vital part of their offering. Is this the modern way of putting solutions together?


This item appears in the following sections:
Treasury Management Systems
Dedicated Treasury Systems
General Treasury Systems
Strategic Customised Treasury Systems

Also see

Comments

No comment yet, why not be the first?

Add a comment