BANKING AND FINANCIAL SERVICES

DerivActiv provides daily independent valuation services to financial institutions. This daily, online, web-based platform is used to compute valuations for daily profit & loss, end-of-period financial reporting, and risk management. Banks also use our service to track changes to counterparty credit ratings and to keep track of collateral thresholds and posting.

Our derivative valuation service provides end-of-day market values for interest rate products, foreign exchange and equity derivatives. In addition to valuations, we also verify payment cash flows, giving management an easy way to verify the accuracy of its counterparty payment demands.

DerivActiv offers specialized expertise in complex accounting valuations, including FAS 133 hedge accounting and FAS 157/159 fair value accounting.

For our FAS 133 clients we prepare the initial hedge designation memorandum that defines the hedge and the hedged item and provides all of the documentation required by the auditors. We also perform the initial hedge effectiveness calculations and help our clients determine the assessment method for ongoing testing. Finally, we perform the on-going effectiveness testing for each reporting period, including a report showing the accounting entries required.

The recent implementation of FAS 157 has introduced a new methodology to determining derivative valuations. DerivActiv was an industry leader in developing approved calculation methodologies for interest rate, foreign currency and equity derivatives. We have developed our own credit adjusted curves for all types of financial institutions and their counterparties. We provide quarterly reports to our clients using auditor approved methodologies and provide clients with a methodology memorandum for their recordkeeping.

DerivActiv has received a SAS 70 Type II certification by an independent auditor.

For more information, call us at 866-200-9012 or click here to request a free demonstration.