Table of Contents
Review and Approve Effectiveness Tests
Introduction
Review and Approve Tests provide details of the effectiveness assessment results for a specified period. It allows the flexibility to filter results for subset of transactions and to download the results as excel output for summarized view of test results.
Review and Approve Effectiveness Tests
From the welcome page, navigate to Accounting > Accounting Dashboard:
Once the dashboard page has loaded, navigate to Review and Approve Tests on the left side menu:
The first thing you should note on this page is the selected date or date range. Make sure the correct dates are chosen for the period you want:
If the period end has not been run yet, you will see this message:
The ET Summary will pop up onto the screen when the correct dates are chosen, and looks like below (depending on how many tests you have):
The columns included in the ET Summary are:
- Chatham reference number (CRN): Chatham’s trade identification number. Each trade is given a unique CRN
- Chatham reference number (HYPO): the CRN corresponding to the hypothetical derivative
- Product: the type of trade (e.g. Swap, FX Forward, XCCY Swap etc.)
- Designation: the designation type for trades (e.g. Cash Flow, Fair Value, Net Investment hedge etc.)
- Assessment Description: a description of the type of test run on the trade
- Test Date: the date for which the test was run
- Test Method: the hedge effectiveness testing method
- Test Type: a description of the test used (Prospective or Retrospective). Use this column to download test documents
- Currency: currency used in the test
- Ineffectiveness Source: Details on any source of ineffectiveness/ mismatch of the hedge relationship
- Slope/R Squared/F Stat: Effectiveness test results statistics
- Test Status: Effectiveness test result (passed/failed)
- Cumulative OCI Balance/ Cumulative Ineffectiveness Balance/ Dollar Offset Ratio: the OCI and ineffectiveness balances and dollar offset ratio pertaining to the measurement test
- Status: Tests should be Approved to be part of the reports
- Created by: Person who ran the effectiveness/measurement test
- Created On: Date and time when the test was run
Note: More columns are available as you scroll to the right
On top of the summary dashboard there are a few data selection tools that are helpful in customizing the data and exporting it:
- You can export this information to an Excel file by clicking the X icon
- You can search for specific tests or sets of tests by using the search bar:
- You can group the tests by several preferences
Once a test is selected there are a few tools that are helpful in the review and approve test workflow:
- You can approve tests
- You can delete tests with the trash can icon
- You can save selected reports to documents with the arrow icon