Accounting & DisclosureRisk ManagementTalking Shop

Talking Shop: How Well Does Quantum Manage Interest Rate Swap Accounting?

By October 13, 2020 No Comments

Member question: “For those who use Quantum as their TMS, do you also leverage Quantum for hedge accounting, and if you do, does Quantum (in your opinion) manage interest rate swap accounting well?

  • “We have been using Reval for a while, but just wanted to know if people have been able to leverage Quantum V6+ for hedge accounting, including interest rate swaps.”

Peer answer 1: “When we put our interest rate forward starting swaps in place a few years back, Quantum did not have the accounting capabilities to handle what we needed so it was kept offline in Excel. That could be different now in 6.9, but we have not explored what is possible in the new version.”

Peer answer 2: “When we deployed Quantum, we were ‘sold’ the IRS functionality, but it never materialized. We had previously used Reval for IRS and FIS’s Sungard for our TMS. We hoped Quantum would bring it under one roof, but we had to stick with Reval for the IRS piece.

  • “We ultimately moved away from Reval and to Chatham. We are very pleased with Chatham and use them for FSSs, IRSs, and XCSs.”

NeuGroup Insights offered FIS Quantum the opportunity to comment. A spokeswoman for FIS declined.

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Justin Jones

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