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Solutions & Services
Value Proposition
Many corporations have attempted a manual solution or relied on cash management
vendors to manage their derivatives under FAS 133/ IAS 39/ CICA 3865. These approaches
are inefficient, ineffective, or both. HedgeRx ® can reduce client operating
costs as well as potential earnings volatility and risk of restatement. Moreover,
clients will enjoy the economic benefits of increased hedging flexibility and enhanced
pricing power. Together, these benefits can have a significant impact on the bottom
line and on shareholder value.
Improved Financial Management
Many companies avoid putting on hedges that are difficult to manage under FAS 133/
IAS 39/ CICA 3865. HedgeRx ®’s compliance capabilities and ease-of-use
immediately expand the client’s hedging repertoire to include the most economically
advantageous instruments.
In addition, Reval’s integrated, market data and market-standard pricing algorithms
enable corporate clients to negotiate improved pricing with dealers. HedgeRx ®'s
risk management and reporting capabilities facilitate the creation and implementation
of optimal hedging strategies.
Reduced Costs
Competing client-server systems and inefficient manual processes can be very expensive,
particularly after accounting for the costs of licensing, market data, integration,
and maintenance. Reval’s ASP model, with centrally managed market data, pricing
models, and maintenance, enables HedgeRx ® to lower the client’s total
cost of ownership. The intranet delivery option also provides significant management
and distribution efficiencies over the client-server model.
Reduced Earnings Volatility
Swings in earnings as a result of unnecessary or unanticipated derivative-related
adjustments can have a negative impact on company market value. HedgeRx ®’s
FAS 133/ IAS 39/ CICA 3865 functionality enables clients to maximize the effectiveness
of their hedges and minimize the impact of derivatives on their financial statements.
Reduced Risk of Errors and Delays
Delays and errors inherent in manual, spreadsheet-based processing can lead to late
or incorrect reporting and damage a company’s credibility and its market value.
Reval’s streamlined solutions enhance process stability and pricing accuracy,
greatly reducing the risk of errors inherent in a manual process. The redundancy
of the HedgeRx ® database and software provides access to critical information
even in a localized disaster. The financial and accounting expertise of Reval’s
staff covers the risk of staff turnover, illness, or vacation.
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