Reval, the leading global derivative risk management and hedge accounting solutions provider, reported today that it houses more than one million over-the-counter (OTC) derivative trade contracts valued at US$3.9 trillion in gross notional value in its Web-based system used by corporate end-users hedging commercial risk. Direct Energy, one of North Americaâs largest energy and energy-related services providers, recently processed the one millionth milestone trade.
âIn just three to four years, weâve seen the flow of trades grow from about 60 thousand per year to about 300,000 trades per year,â reports Reval Chief Operating Officer Philip Pettinato. âRevalâs ability to scale over a relatively short period of time is considerable because it demonstrates how easily the SaaS platform supports a wide range of instruments used in hedging strategies employed by major industry players such as those in energy and financial services.â
Revalâs single-version Software-as-a-Service (SaaS) supports a broad range of derivative asset classes for over 400 companies hedging exposures to interest rates, foreign currencies and commodities in the North America, EMEA and Asia Pacific regions. It addresses the complex risk, valuation and accounting requirements that is ongoing in the management of OTC derivative trades.
âWe have been a happy client of Reval for six years and have seen their platform scale up as our business and hedging needs have grown,â says Direct Energy Technical Accounting Manager, Jodi Herring. Direct Energy uses Revalâs Software-as-a-Service (SaaS) for the valuation and cash flow hedging of its natural gas and power exposures.
Revalâs ability to handle large volumes of derivatives across asset classes on a single, multi-tenant database over the Internet enables it to be positioned as a Swap Data Repository, one of the new requirements outlined in the Dodd Frank bill.