To deliver on the advantages clients gain from our seamless integration of advisory, operations, and technology, the ChathamDirect team continually enhances our platform, streamlining the way users manage their exposures, hedging policies, execution, valuations, and hedge accounting.
In 2019, we dedicated significant resources to product development, incorporating user feedback to:
- Integrate with ERP systems and other platforms
- Improve exposure management
- Enhance recommendations and reporting
- Streamline hedge accounting
- Deliver time-saving features and improve the user experience
"We incorporated client feedback into every project we undertook," said Stephen Barr, Product Manager for ChathamDirect. "By continually connecting with clients to understand their strategic objectives and day-to-day processes, we've directed our development efforts toward achieving the highest potential impact.”
Integration and connectivity
ERP data integration
With the first phase of our SAP S4/HANA data integration now complete, you can now pull data directly from S4/HANA into the ChathamDirect balance sheet exposure management model. In response to client feedback, our system now automatically aggregates data upon import. When you send multiple rows with the same data qualifiers (entity, currency, type, subtype, and balance date), the system will aggregate those rows and load a single record that sums the data. This facilitates straight-through processing, eliminating manual work, and provides a more holistic view of exposures.
With ChathamDirect journal-entry mapping, you can now load journal entries directly into your ERP system for straight-through processing with no manual reformatting. Part of our ongoing effort to advance connectivity across the treasury technology stack, this increases controls, improves accuracy, and streamlines your period-end accounting process.
Enhanced support for embedded derivatives
If your organization has contracts that contain embedded derivatives, you may now be able to use the ChathamDirect transaction loader to upload them into our system, which will automatically calculate the implied strike rate and base currency amount. This means most companies no longer need to calculate these amounts, plus the embedded derivatives will receive daily valuations that appear on Chatham-generated reports.
Trade loading and platform integration
Clients with large portfolios will see more relevant transactions faster with performance improvements to our interest rate, FX and commodity transaction loaders. Rather than showing the last 30 days of transactions, the transactions page now displays any seven-day period you choose. Additionally, our commodity transaction loader now supports weekly resets for all commodity products. Plus, ChathamDirect sends FX spots, forwards and swaps directly to Bloomberg, FXall, and 360T for seamless, straight-through processing.
The bottom line: You will continue to see greater connectivity, tighter integration, and improved performance.
Based on market feedback, ChathamDirect offers new ways to group exposures in both the balance sheet and cash flow modules. We've also added trend and forecast accuracy analysis tools. With these enhancements, you can better understand your exposures and how they evolve over time.
Enhanced cash-flow risk management
Companies hedging their cash flow risk back to the parent functional currency can now access improved functionality for understanding and analyzing their risk. Based on client feedback, Chatham better aligned derivatives from local or central trading entities with the netted exposures forecast across the company. By providing more visibility into your current hedge ratio and opportunities for layering on additional derivatives that qualify for hedge accounting, this enables a more holistic view into your cash-flow risk management program.
The bottom line: With our exposure management enhancements, you can easily pinpoint changes to your exposures and identify outliers to ensure a more complete, accurate, and timely set of exposures before making hedging decisions.
Period-end processing and reporting
Flexible, automated month-end processing
ChathamDirect now supports flexible month-end calendars on the Web so you can automatically run month-end processes on a custom calendar and project them out indefinitely. Whether your organization follows a calendar or fiscal month-end, a 4-4-5 calendar or any other calendar, you can automatically drive accounting and cash-flow exposure management functionality through ChathamDirect. This automated process flows straight through from cash-flow exposure management to accounting, dynamically linking your exposures and hedges.
Online period-end checklist
You can confidently manage period-end reporting with our online period-end checklist, which is designed to increase controls and enable straight-through processing. With this tool, you can access a straightforward workflow and auditable controls to verify that you have either updated or sent Chatham updates on your trade population, changes to accounting details, current credit information, custom FX rates, and final settlement rates for your trades. Your Chatham accounting team can also view an overview dashboard to ensure you have completed this checklist before valuation and accounting processes run at period end.
The bottom line: With ChathamDirect's added controls, you’ll find it easier to execute an efficient, accurate period-end process.
Robust management reporting
Global treasurers frequently tell us that a risk system is only as good as its reporting capabilities. You need quick access to real-time data about your risk management program so you can make the best decisions and adeptly explain the program to key stakeholders. Distilling 18 months of insight from global treasurers and risk professionals from Fortune 500 enterprises, Chatham’s best-practice overview dashboard captures the information most requested across interest rate, FX and commodity asset classes. This enhanced reporting system puts crucial data at your fingertips, including an overview of your hedging program across asset classes and the ability to drill into details at any level you require. You can compare your exposures and hedge positions and see how they evolve over time. You can also design and publish custom reports and easily share them across your organization.
The bottom line: You can employ a powerful tool built with input from global treasurers—customized to deliver just the information you need.
Streamlined hedge accounting
Hedge accounting with ChathamDirect is easier than ever. With just one click, you can now run a period-end batch, including journal entries and effectiveness tests, on all relevant trades — without needing to identify the trades. ChathamDirect does it all for you at the touch of a button.
Onboarding journal entries
It is also much easier to onboard new trades that are midway through their economic lifecycle. When you are initially onboarding trades or adding new ones acquired through M&A activity, you can now run cumulative journal entries as of a designated time just by clicking a button.
Now you can create pre-defined, standardized accounting quickly, easily, and in bulk. This includes new workflows for inception, dedesignation, and redesignation events with a new best-estimate workflow coming soon. It supports multiple assessments to automate inception and ongoing assessments for broad LIBOR designations, bookend analysis, and more. This means you can automate adherence to your accounting policy for better controls and outcomes.
Improved user experience
We’ve worked behind the scenes to improve speed, security and stability. You may notice an improved experience in processing trades from external platforms like Bloomberg, FXall, and 360T. We also enhanced the CFaR optimal hedging order tool for balance sheet for faster loading speeds and improved performance. Additionally, you’ll see an improved user experience loading trades through both the transaction loaders and the API, and streamlined handling of accounting policies and strategies when trades are loaded. Throughout 2019, we continued to rigorously monitor page-use analytics and other metrics to ensure optimal performance and responsiveness, even during peak times.
The bottom line: You will experience improved speed, security, and stability throughout our platform.
Additional functionality enhancements and improvements are underway and scheduled for release in 2020.
“Harnessing innovative ideas from our advisory, operations, and technology teams and working closely with our clients and partners, ChathamDirect is positioned for rapid growth and development in 2020,” said Jamie Weaver, Executive Director, ChathamDirect and Hedge Accounting. “Our holistic, integrated approach to financial risk management enables us to deliver unparalleled functionality backed by highly credentialed hedging and hedge accounting practitioners.”
ChathamDirect is a groundbreaking Treasury Risk Management and hedge accounting platform that supports foreign exchange, interest rate, and commodity hedging programs. ChathamDirect provides a clear view of your entire hedging program, including cash flow forecasts, balance sheet exposures, and hedge requests—all securely available on a leading SaaS platform. ChathamDirect is backed by Chatham Financial, an employee-owned, independent market leader with a global team of capital markets experts, risk management advisors, CPAs, lawyers, quantitative analysts, and technology developers who serve more than 2,500 clients annually.