Large east-coast dealer with over $200 billion notional of derivative transactions.

Historically the dealer provided limited accounting guidance and services to its customers.


Swap Dealer Needed Hedge Accounting Assistance


  • A large dealer had several large public corporate clients who required hedge accounting treatment for their interest rate derivatives.

  • The dealer could not assist their clients in providing pro forma accounting analysis, hedge documentation or ongoing accounting reporting.

  • The lack of in-house hedge accounting resources put the dealer at competitive disadvantage. Transactions that required hedge accounting were often lost to competitors who were able to provide accounting expertise.


  • The dealer partnered with Derivative Path to expand its hedge accounting capabilities.

  • The dealer’s sales desk was given access to DerivativeEDGE, Derivative Path’s state-of-the-art hedge accounting platform, and to DPI’s seasoned group of hedge accounting experts.

  • The dealer also gained the ability to refer clients to Derivative Path’s hedge accounting reporting platform which provides hedge inception documentation along with ongoing journal entries and effectiveness assessments.