Case Study: Nationwide Building Society achieves streamlined portfolio hedge accounting and greater control with Murex MX.3

Nationwide Building Society Hedge Accounting

Nationwide Building Society, the world’s largest building society and the UK’s second largest mortgage lender with over 15 million members, needed to replace a legacy treasury system to improve hedge accounting for its large retail mortgage and savings portfolios. Facing complex IAS 39/IFRS 9 requirements, limited flexibility, heavy manual effort and reliance on front office teams to manage hedge designations across proxy portfolios of 15–20,000 tickets (typically hedged with packages of 2–3,000 swaps), Nationwide selected Murex and its MX.3 platform to deliver a more controlled, automated solution.

Murex worked with Nationwide to develop and deploy a new portfolio hedge accounting module within MX.3 (went live November 2017) that models portfolios into proxy portfolios, streamlines designation/re-designation, automates accounting postings to the general ledger, and supports regulatory testing and documentation. The Murex solution moved ownership of the process into finance, removed month-end constraints so hedges can be created anytime, reduced manual work and front-office dependency, improved hedge optimization and reporting transparency, and is expected to lower income-statement volatility.

Nationwide Building Society

Chris Black

Head of Treasury Finance