Consulting Services

Based on real-world customer experience, Hedge Trackers has developed and refined a portfolio of modular consulting services that are configured for each unique customer situation. Services that include:

FAS 161 Derivatives Disclosures

  • Practical approaches to FAS 161 required disclosure
  • Incorporating disclosure guidance into existing hedge programs
  • Identifying sources and process to capture required data
  • Audit support

FAS 52 Review

  • Non-local to local validation
  • Local to functional validation
  • Shadow balance control
  • Company-wide consistency of rule applications (set-up in system)
  • Ongoing validation (model)
  • Functional to reporting validation
  • Systems set-up
  • Elimination results (FX)
  • Rate setting
  • Process documentation

Exposure Collection I – Accounting Exposure

  • Responsibility
  • Engage foreign entities
  • Collectability
    • systems
    • spreadsheets
  • Netting global exposures
  • Reporting by currency by entity source of FX gain/loss
  • Process documentation

Exposure Collection II – Economic Exposure

  • ID monetary assets/liabilities at risk
  • Process for collecting/reporting by currency/entity relevant, substantive CTA moves
  • Process documentation

Exposure Collection III

  • Define timing of currency risk into financial statement
  • ID geography of currency in financial statement
  • ID sensitivity of market analysts to I/S geography
  • Find operative source of currency exposure data for go forward
  • Define procedure for collecting data
  • Process documentation

Strategy Development

  • Present exposures
  • Present I/S and B/S geography implications
  • Recommend strategic changes
    • Currency of denomination
    • Functional currency
    • Sourcing
    • Natural hedge opportunities
  • Define appropriate control structure
  • Highlight constraints (functional currency etc)
  • Extract management objective for hedge program
  • Review derivatives strategies using plain vanilla instruments
  • Drive to program selection
  • Develop policy covering all

Design Hedge Program

  • Figure out what to do economically
    • Work with tax to determine location of hedge result
    • Construct a FAS 133 program that delivers as much financial statement result as possible
    • Document the source of exposures. ID where distinct from FAS 133 stated exposure
  • Determine FAS 133 elections
  • Define FAS 133 documentation, trade tickets, bridge, SOX
  • Assist company in establishing trading relationships

Training

  • How to trade
    • Currency conventions
    • Jargon
    • Shopping
  • Accounting
    • FAS 52 training
    • Fair value derivatives
    • FAS 133 rule application
    • Assist
    • Oversee
    • Review
  • Effectiveness testing

Performance Reporting

  • Implement a process to show effectiveness (accounting and economic) of program
  • Reporting on sources of ineffectiveness (feedback loop)