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Quote Derivates and OTC

In recent years we have seen an increasing use of derivatives by banks and financial institutions, in terms of volumes handled, types and variety of instruments. The structures of the underlying contracts have become ever more complex, which makes it very difficult for operators to monitor, evaluate and account derivatives, whether in a hedging or trading context.

For banks, financial institutions and finance departments in general, it is ever more critical that they equip themselves with computer tools to enable them to effectively manage the administration and accounting of open derivative positions.

The Cedacri Group offers two specialised products for the complete management of derivatives, whether in regulated markets or OTC. Both solutions are interconnected with the Cedacri banking platform but can also be integrated with the client's custom solutions.

Quote Derivates
The module manages bank middle and back office activities for quoted derivatives; it is interconnected with the banking platform, and supplies data to, among others: securities, financial instrument database, general accounting, vigilance reporting, client dossiers and current accounts.
Principal functions:

• Registration of operations
• Calculation of margins on open positions
• Debit/credit of variation/guarantee margins to the client's account
• Management of guarantee securities to cover initial margins
• Daily calculation of security value (mark to market)
• Forwarding of contracts to the general accounting module
• Forwarding of movements for vigilance reporting
• Interfacing with the security and treasury front end system of the banking platform

OTC
OTC derivatives is an innovative module which supports the Middle and Back Office in handling administrative and accounting functions for all non-standard financial instruments, and connects with the most commonly used front office applications. The module is compliant with IAS/IFRS in a Full Fair Value in real time policy. OTC products handled Exchange instruments:

• O.P.T. (Currency Option) handled in both European and American style, in the "Euro to currency" and "currency to currency" modes, where the regulation may be "capital exchange" or "differential"