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Foreign Exchange Contract system

We are manually tracking our foreign exchange contracts with regard to outstanding balances, expiration dates, accounting treatment.  Our bank has limited reporting. Can you recommend a system or give insight into how you are managing the process?


Steve Wong
Title: Senior Treasury Manager
Company: Seagate Technology
LinkedIn Profile
(Senior Treasury Manager, Seagate Technology) |

Most of the treasury management systems offer an FX module, which can not only track the outstanding contracts, but would also automate the FX contracting process. Some can also calculate the fair value of the contracts at month end and generates the journal entries. A system can defintely enhance the control and accuracy, lending much more credibility to data integrity. The biggest issue, though, is that the treasury management systems are pricy.

Walter Boileau
Title: VP Corporate Treasurer
Company: Polycom Inc.
(VP Corporate Treasurer, Polycom Inc.) |

We use Capella (from Hedgetrackers) which is a web based (SaaS) solution for managing your FX contracts. It has a front end system that can connect to trading portals and allow you to upload trading information directly. It also allows you to upload trade data from spreadsheets. In addition, you can also input the information directly into the system while on the phone with the banks. It generates summary and trade level journal entries by functional currency by trading entity. It can even prepare disclosure tables for external reporting. It allows non traders to do the accounting so you can have segregation of duties. When the trade (for an associated exposure) is executed, it automatically generates the special hedge accounting and required designatation documentation when needed. It also calculates effectiveness tests and includes calculated ineffectiveness and excluded time value in the journal entries and disclosures.

We have been very pleased with the software and have been able to rely on Hedgtrackers to keep it current with the latest accounting requirements. For all that we get from the above, we believe the pricing for this software is quite reasonable and I would highly recommend that you contact Hedgetrackers and look into it!


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