Press Release
Federal Home Loan Bank of New York meets full FAS 133 compliance with Principia Partners solution
Principia Partners commitment to major accounting regulation provides leading US agency with timely FAS 133 compliance
Jersey City, New Jersey, May 15, 2001 - Principia Partners LLC, a leading provider of full front-to-back office systems for global capital markets, today announced that the Federal Home Loan Bank of New York (FHLB New York) has successfully implemented FAS 133 for the first quarter of 2001, using the Principia Analytic System (PAS).
The Principia system enables FHLB New York to produce internal and external derivatives reporting in compliance with the new accounting standards. PAS is used to analyze potential transactions, value derivatives and related cash items, summarize the accounting entries and assess the effectiveness of the hedging relationships. The derivatives standards were established by the Financial Accounting Standards Board (FASB) and effective as of the first quarter of 2001. PAS also allows the bank’s treasury and risk managers to identify and hedge potential risk.
Patrick Morgan, Controller, FHLB New York, states: “Our goal was to comply with the FAS 133 regulations. In order to do this we had to find a vendor that clearly understood our business and could integrate its solution with our existing accounting infrastructure. The PAS product is well designed and has met all our requirements. Our focus has always been to employ a sophisticated, quick-to-implement and easy-to-use system. We truly believe that we have chosen the best system and a vendor that can meet our present and future needs.”
Theresa Adams, one of Principia’s founding partners, states: “Very early on we realized the importance of this major regulation and released our FAS133 compliant version of PAS in the first quarter of 1999. We have created a system that seamlessly brings together both accounting and pricing capabilities for assets, liabilities and derivative instruments. We are delighted to provide such a successful and prestigious organization as FHLB New York with full FAS133 compliance.”
FHLB New York uses the PAS sub-ledger facility to mark derivatives and cash items to market, link specific assets and liabilities with specific hedge instruments, document hedge relationships, and demonstrate the effectiveness of hedging policies.
Adams concludes: “Derivatives end-users, such as corporations, insurance companies and government entities need a thorough, well thought-out approach to compliance that can be fully customized to reflect each client’s unique and changing FAS 133 interpretation. In addition to being ranked fully compliant by FAS133.com and International Treasurer, we were also awarded the highest ranking for system functionality. During the development process we collated valuable advice from our end-user community about their needs and concerns. This helped us design and implement what we believe is a complete solution. Our aim is to continue providing a highly flexible accounting function that gives our clients the ability to comply with the new standard.”
About Federal Home Loan Bank of New York
The Federal Home Loan Bank of New York is a AAA rated, congressionally
chartered, wholesale bank. It is part of the Federal Home Loan Bank
System, a national wholesale banking network of 12 regional, stockholder-owned
banks. The Federal Home Loan Bank of New York serves 300 community
lenders in New Jersey, New York, Puerto Rico and the U.S. Virgin
Islands. The mission of the Home Loan Bank is to advance housing
opportunity and local community-based member-lenders to serve their
markets.
About Principia Partners
Founded by a group of finance and technology professionals,
Principia Partners offers a fully integrated front to back office
solution for management of financial assets, liabilities and derivatives.
The Principia Analytic System covers fixed-income (including ABS/MBS),
FX and equity index products. The sub-ledger facilitates full compliance
with both FAS 133 and IAS 39 accounting regulations. Principia’s
target market is composed of end-users, dealers, fund managers
and other entities that require sophisticated processing capability
without the desire or resources to develop internal systems. For
more information about Principia, see www.principiapartners.com.
Principia Partners is headquartered at the Harborside Financial Center, Jersey City, New Jersey, USA.
For press information contact:
Shamira Alidina
Write Image
271 Regent Street
London W1B 2BP
shamira@write-image.co.uk
Tel: + 44 (0) 20 7959 5450
Fax: + 44 (0) 20 7493 5499
Email: shamira@write-image.co.uk