Ledger Sweep
Table of Contents
Summary
The ledger sweep is a daily, automated, ledger-side process, distinct from Spot Sweep. The ledger receives all positions — live and settled cash — in transactional currency. Once a day, an automated process spot-converts these into each book's functional currency, capturing the resulting P&L into a dedicated FX Revaluation entry. It is a Sweep in the general sense, but unlike spot sweep it is not opt-in, applies to every ledger book unconditionally, and produces only an unrealised valuation entry rather than a real, executed trade.
Detail
What it is
The ledger receives all positions — live and settled cash — in transactional currency. Once a day, an automated process spot-converts these into each book's functional currency, capturing the resulting P&L into a dedicated FX Revaluation entry — see FX Spot Revaluation Types for the three distinct accounting treatments (Balance Sheet, Position Account, Forward Position reval) this entry can take. This whole daily conversion is what "ledger sweep" refers to.
Book positions (transactional ccy) ──► daily spot conversion ──►
Functional-currency balance + FX Revaluation P&L entry
Unconditional, unlike spot sweep
The ledger separates realised from unrealised P&L; ledger sweep's FX
Revaluation output is unrealised, reflecting a valuation conversion
rather than an executed trade. Ledger sweep and Spot Sweep share a
name and a conceptual goal (cleaning up cross-currency exposure) but
operate at entirely different layers, and Is Sweepable governs spot
sweep eligibility only — it has no bearing on ledger sweep, which
applies to every book with a functional currency regardless of that
flag. See Book and the ledger for the wider ledger-sweep mechanics
(functional currency, the daily automated process), and Sweep for
the full comparison table against spot sweep.
See also
- Sweep – hub note; the general concept this is one of two instances of.
- Spot Sweep – the periodic, front/middle-office counterpart.
- Book and the ledger — functional currency and the ledger sweep mechanics in the context of the wider ledger connection.
- FX Spot Revaluation Types — the three accounting treatments ledger sweep's FX Revaluation entry can take.
- Functional Currency – the currency ledger sweep translates every position into.
- Transaction Currency and Denominated Currency – the currency positions arrive in before ledger sweep translates them.