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Hedge Accounting

Complete Derivative Reporting Solution for Crypto Assets

The Satoshi Terminal’s Hedge Accounting Solution is a tool designed to help crypto-focused firms meet the requirements of hedge accounting and financial instrument standards under both international and U.S. accounting regulations.

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Features

Comprehensive Compliance

  • Facilitates hedge documentation creation and effectiveness testing to ensure compliance with accounting standards.

Industry-Leading Systems

  • Updated continuously with new accounting standards, ensuring the most accurate valuation tools are available.

Superior Customer Support

  • Comprehensive onboarding process with 24/7 global support from crypto and financial accounting specialists.

Integrated Risk Management

  • Seamless integration with The Satoshi Terminal’s Treasury and Risk Management (TRM) solution for analyzing crypto and financial exposures.

Flexible End-to-End Solution

  • A robust suite of tools ensures compliance with fair value accounting standards, simplifying workflows.

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Key Functionalities

01. Industry-Leading Systems

  • Programmatic Access: Provides an API for accessing a modular reporting framework, enabling customization of hedge accounting reports.

  • Third-Party Integration: Seamlessly integrates with existing technology stacks, including third-party crypto accounting software.

  • Cost-Effective Technology: Supports a more rules-based, automated accounting process, particularly for month-end activities.

02. Reporting and Documentation

  • Comprehensive Reports: Generate detailed measurements and disclosures, including:

    • Hedge adjustments

    • OCI release

    • Crypto-specific fair value accounting adjustments

    • Trade-level and consolidated reporting

  • Customization: Supports custom reports for trade-specific hedge accounting needs.

03. Quantitative Effectiveness Testing

  • Testing Methods: Supports extensive testing methods, including:

    • Critical terms match

    • Shortcut testing

    • Scenario analysis

    • Dollar offset

    • Regression testing

  • Periodic and Cumulative Testing: Run tests at each reporting date to ensure hedge effectiveness.

  • Integrated Valuation Adjustments: Incorporates MARS X-Value Adjustments (XVA) to quantify CVA/DVA adjustments for crypto derivatives.

04. Controls Framework

  • SOC1 Certified: Establishes a reliable control framework for recognizing transactions in financial statements.

  • Transparent Methodologies: Tracks all changes with detailed audit history for compliance assurance.

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Benefits

Compliance Made Simple

  • Automates and streamlines hedge accounting processes to meet regulatory standards with confidence.

Improved Risk Management

  • Integrated tools provide a unified view of financial and crypto exposures, ensuring precise hedge effectiveness measurements.

Global Support

  • 24/7 customer service ensures continuous assistance, no matter where you operate.

Cost-Effective Solution

  • Reduces manual processes and eliminates inefficiencies, making it a scalable solution for firms of all sizes.

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Why Choose The Satoshi Terminal Hedge Accounting Solution?

  • Built for Crypto Markets: Tailored specifically for the complexities of hedge accounting in the crypto economy.

  • Seamless Integration: Connects effortlessly to existing accounting systems and tools.

  • Transparent and Reliable: SOC1-certified control framework ensures audit-ready records and methodologies.

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