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In today’s world of new restrictions created by Sarbanes Oxley and especially the scrutiny that is being placed on the derivatives markets Trade’s Hedge has become all the more valuable. Due to these increased restrictions a burden has been placed on traders, trade managers, internal and external auditors to understand and control all derivative positions as well as know what their effect may have on the company’s financial health.
To mitigate these concerns Trader’s Hedge employs a dual sign off process for each transaction entered or automatically downloaded from the FCM. The dual sign off occurs by both the trader of the transaction and the accountant who receives the account statements. The trader looks at the new activity and verifies the price and quantity of each trade. If it is accurate it is marked accepted, otherwise it is rejected. In an independent process the accountant enters the current position of the account and verifies the transactions for the period. If a transaction is missing from the system it can be added by the accountant or trader and then both must verify. If a transaction was entered in error the transaction can be removed when both trader and account have rejected. The position is adjusted and if it matches the values entered from the statement the reconciliation process can complete.
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