Lloyds TSB Corporate Markets Adds Reval’s IAS-39 Derivatives Tool to Product Suite

Lloyds TSB Corporate Markets has added Reval’s HedgeRx derivatives risk management solution to its client product suite. The system uses regression analysis to test hedge effectiveness of interest rate, foreign exchange and commodity derivative products. The product will be used to demonstrate hedge effectiveness prospectively, enabling the bank to present IAS-39 friendly hedging solutions to its customers. It will also be used to demonstrate the numerical impact of not achieving hedge accounting. This latest rollout is a further step in the bank’s strategy to expand its client solutions capabilities and aids clients implementing option-based hedging strategies.


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