Skip to content
English
Go to cnstreasury.com
  • There are no suggestions because the search field is empty.

What if I want to re-designate trades after discontinuation?

Frequenty asked questions on hedge accounting processes in CNS

Q1: Can I re-designate an FX trade after it has been discontinued?

Yes. While CNS Treasury performs initial hedge designations and settlement-related discontinuations automatically under the auto-hedge accounting framework, you can manually re-designate a trade if it aligns with your business objectives.

Q2: When would I want to re-designate a trade manually?

You may choose to manually re-designate a previously discontinued FX trade if:

  • The trade was partially discontinued, and a new forecast exposure has emerged that aligns with the remaining portion.

  • Business needs have shifted and it is appropriate to link an existing trade to a new eligible exposure.

  • You have extended a forecast transaction and want to re-align it with a rolled or remaining portion of an FX contract.

Q3: How do I re-designate a trade in CNS Treasury?

  1. Navigate to Hedge Accounting → HA View Data → View FX.

  2. Locate the discontinued trade you wish to re-designate.

  3. Click the three ellipses (...) under the Action column.

  4. Select Designate (only available for discontinued trades with eligible amounts).

  5. Enter the necessary designation details, including:

    • New designation amount

    • Hedge relationship type

    • Forecast item reference

    • Designation date and effectiveness method

  6. Click the tick icon to confirm the designation.

Q4: Will CNS automatically track the new designation?

Yes. Once re-designated, the trade will be treated like any other active hedge relationship. It will appear in your hedge accounting reports and follow the usual lifecycle logic, including future automated discontinuation at settlement (if applicable).

Q5: What are the compliance implications?

Manual re-designation must follow your organisation’s hedge accounting policy and IFRS 9 guidelines. Ensure:

  • The new hedge relationship is documented properly.

  • The underlying exposure is eligible and clearly defined.

  • Effectiveness testing is applied where required.

Q6: Can I reverse a re-designation if I change my mind?

Yes, you can manually discontinue a re-designated trade following the same steps outlined in the discontinuation guide.