To deliver the insight and automation treasury teams need to execute optimal risk management strategies, ChathamDirect continually streamlines the way users manage exposures, hedging policies, execution, valuations, and hedge accounting compliance. This quarter, we continue to advance the platform, incorporating user feedback to produce more robust guidance and reporting, time-saving features, and an improved user experience.
Enhanced support for creating embedded derivatives
Clients that have entered into contracts that contain embedded derivatives can now use the ChathamDirect transaction loader to upload those derivatives into our system, which will automatically calculate the implied strike rate and base currency amount related to the embedded derivative’s maturity. This means users no longer need to calculate these amounts, plus the embedded derivatives will receive daily valuations that appear on reports generated by Chatham. The bottom line: Chatham has responded to user requests for increased support for embedded derivatives.
Cash flow offset trades
Cash flow exposure management clients with trade portal integration can now access system-generated trade recommendations to offset their maturing cash flow trades beginning one week prior to maturity. As with all trade requests, the system will capture the existing counterparty for the offset and can send the request to any of the leading trade platforms. Clients utilizing cash flow exposure management should contact their client services representative for an overview of this service. The bottom line: We continue to expand system-generated recommendations to make financial risk management easier for clients.
Online period-end checklist
ChathamDirect users can confidently manage period-end reporting with our online period-end checklist, which is designed to ensure all the required information needed to provide accurate and complete valuation and accounting reports is captured at month or quarter end. The tool provides a straight-forward workflow and auditable controls to verify that clients have either updated or sent Chatham updates on their trade population, changes to accounting details, current credit information, custom FX rates, and final settlement rates for their trades. While initial clients are currently utilizing this feature, Chatham will roll it out more broadly for year end. We will also provide an overview dashboard for internal use so accounting operations teams and accounting managers can see which clients have completed this checklist before valuation and accounting processes run at period end. The bottom line: You’ll find it easier to execute an efficient, accurate period-end process.
Enhanced cash-flow risk management
ChathamDirect now offers enhanced support for companies hedging their cash flow risk back to their parent functional currency. Companies choose this strategy when their primary concern is with translational risk, but they still want to get hedge accounting for their transactional risk. Based on client feedback, Chatham better aligned derivatives from either local entities or a central trading entity with the netted exposures forecasted across the company. The bottom line: You’ll enjoy more clarity on your current hedge ratio as well as opportunities for layering on additional derivatives.
Improved user experience
We continue to work behind the scenes to improve speed, security and stability. As in the previous quarter, we continue to rigorously monitor page-use analytics and other metrics to ensure optimal performance and responsiveness, even during peak times. The bottom line: You’ll enjoy improved speed, security and stability throughout our platform.
Stay tuned for some new developments, including enhanced commodity reporting and an improved final settlement process. Our advanced technology is designed to give your treasury team an edge and we are committed to remaining at the forefront of efficiencies and insights available in the marketplace.
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.