Capture detailed data from all collateral agreement types and feed into commercial and in-house collateral management solutions
Comply with record keeping requirements such as Bank Recovery & Resolution Directive (BRRD) and Qualified Financial Contracts (QFC)
Capture and manage detailed actionable data from all your trade agreements including derivatives, repo and securities lending as well as custom and foreign language contracts, with reporting and search across your contract and document estate.
Risk & Trading
Use our detailed data capture to gain rapid insights into your counterparty contract risk and use our dashboards to analyse ratings triggers, ratings downgrades, termination events and NAV triggers and more.
Our contract lifecycle management module provides alerting and notifications for contract based events in any contract type, from supplier and commercial contracts through to internal policy documentation.
Classification, organisation, de-duplication and data capture for LIBOR and other benchmark reform needs, with pre-defined models and dashboards.
Future proof your contract data management by adopting one platform that can manage your complex business as usual flows, but still provide the flexibility of custom data models and projects extraction needs.
Streamline your contract data operations with a purpose built contract data management solution, simplifying adoption and helping to realise the benefits of contract negotiation platforms.
OTC Derivatives market participants need digitised data from their collateral agreements to feed into their collateral management platform.
The minimum requirement is to have the key data points needed to manage business as usual collateral operations, including key terms such as eligibility schedules, independent amounts, thresholds, minimum transfer amounts, interest and currencies.
Most operational teams type this data in directly, resulting in poor data quality and the operational overhead of re-keyed data.
Often the data being typed in does not match the underlying contract, but is translated by a person and contains operational overrides or interpretations.
Worse still, some of the data being captured is contingent upon external factors – a common example being ratings based terms. Collateral systems will normally contain a snapshot of the data, derived from the point in time that it was entered. In times of economic turbulence (financial crisis, COVID-19) it is common for ratings to change. The collateral management system rapidly becomes outdated and the data incorrect, often with material financial consequences.
Our APIs give complete flexibility to connect to in-house and third party solutions
Total cost of ownership is reduced and crisis management becomes straightforward
By extracting the full detail of the contract and linking to the underlying scan data quality and trust remains high.
For financial institutions regulatory compliance has become part of business as usual since the financial crisis.
This takes many forms, from minimum record keeping requirements in Europe and the US (BRRD, QFC), through margin reform (initial and variation margin) and more recently benchmark reform (LIBOR).
Each of these challenges shares a need to access legal contracts and process them in some way.
Much of the work ends up being duplicated – after all your collateral agreements have already been processed to feed operational systems and your master agreements probably got looked through last time there was a crisis.
For most organisations, each new regulation is handled as a new challenge:
- Find the affected scans
- Sort them.Search them
- Remediate them in some way
With Lyncs this inefficiency is removed. Load your documents up and process them once….making the next challenge simple.
Rapid Triage across your document set
Ever needed to respond rapidly to a business query about contract data? Often it is the legal teams that are the custodians of the store of contracts, even though many other business teams are involved in the input variables that are negotiated into the contracts, as well as needing the operational data from them.
Yet years of under-investment in technology means that answering simple questions is often a considerable effort
For many organisations, their documentation set is not stored in a form or repository where this is possible. In many cases image-based scans are held, often with duplicate documents (the pre-execution and post execution copies for example) but none of these documents are organised by entity or grouped into contract originals and amendments.
Lyncs provides organisation, digitisation, de-duplication, and arrangement by chronology and entity relationship, so that structured data queries and reporting as well as simply finding the relevant contract relationships becomes immediate.
Rich data capture capability coupled with built in reports provides rapid and confident turn-around for any query.
Sometimes, despite having data models it is still useful to be able to run a text search across your legal agreements.
With advanced features such as ‘fuzzy matching’, Lyncs text search can offer rapid-response benefits for locating documents and later this can be expanded to include structured reporting on digitised terms through the built-in report designer.
Find your documents and report on them faster with Lyncs
Imagine being able to see all Master agreements where key clauses have been modified from the standard definitions or disapplied completely.
Pricing, optimisation, analytics
Risk & Trading
Unfortunately, it is only in a crisis that the lack of a good source of this data becomes apparent.
In-house and third party software containing a representation of these clauses is discarded in favour of teams working nights and weekends to search through scanned contracts, to answer key questions relating to the crisis:
- What is my exposure to ….?
- What happens if my credit rating is downgraded?
- What happens if my counterparty’s credit rating is downgraded?
- What happens if interest rates turn negative?
- Do I have Force Majeure clauses?
- What termination rights do I / they have?
Our software helps our clients answer these questions confidently, without resorting to basic search. Providing the data you need, when you need it, with drill down directly to the underlying contract.
By fully digitising the legal agreement data it is easy to react to market events such as rating downgrades or collateral liquidity challenges.
Full granularity of non-cash collateral schedules including concentration limits paves the way for optimisation of collateral allocation.
Granular capture of all clauses, including interest, thresholds, independent amounts, minimum transfer amounts and re-hypothecation rights allows better pricing and management of risk.
Contract lifecycle Management
Contract Data Management
Store and manage your supplier, commercial contracts and policy documentation, establishing alerts on key review, obligation and audit dates.
Create a system of record for published versions of internal policies.
Link ‘alert’ triggers to passages of text within documents. Full granularity on date recurrence, with unlimited custom alerts and fine-grained control on tagging, classification and notification.
Relate relevant documents both within the system and to external stores of ‘working’ documents, such as MS OneDrive and other vendor stores.
Use Alert dashboards to visualize and manage date-based obligations such as contract auto-renewals, reviews, payment and other dates.
All your contracts, organised, searchable and with reports, dashboards and alerts.
Market and regulatory driven projects
The one part that is certain is being able to identify which of your contracts are affected:
They reference one of the rates;
They will not have terminated before the rate ceases to be available;
The fallback in the case of the rate being unavailable does not properly account for this eventuality.
Our LIBOR module is designed to help with exactly this problem. The new module includes ready to use models for commonly affected document types such as loan agreements, derivatives documents and trade confirmations and includes simplified onboarding, classification and machine learning and rules based clause detection, backed by the Lyncs contract data management platform.
Lyncs lets you manage your remediation projects in the same platform you use to future-proof your business-as-usual operational contract data management.
The value gained from categorizing and digitizing your scans as part of IBOR forms the foundation for further processing. Continued single-use remediation projects are largely a waste of precious time, money and resources. Use Lyncs to break this cycle.
Lyncs is designed as a fully functional operational contract data management platform. See our Trade documentation fact sheet for details on our processing modules for derivatives and other trading documentation to gain accurate, consumable data for operational, regulatory and risk management purposes.
Lyncs LIBOR platform is ready to use. With pre-built extraction you can start processing documents immediately with significant cost and time savings over alternative solutions.
Custom Data Capture
The Lyncs platform also supports project based processing. This gives complete flexibility to run data capture and processing projects across any contract type in parallel to normal day-to-day operations. Imagine being able to deal with a project such as LIBOR or Brexit, without interfering with your business as usual trade documentation flows!
Lyncs No-Code Template Builder simplifies complex data driven extraction challenges
Future proof contract data management
The clause libraries standardises negotiation and negotiation platforms are moving closer to ‘straight-to-digital’ – capturing as much data as possible while authoring.
Common Domain Models (CDM) provide a
common language for representing the legal agreement operational data, facilitating better vendor interoperability.
Logical Construct’s Lyncs provides connectivity with these initiatives – aiding their adoption and bridging the gap between the old and new worlds – nobody wants to have to look in
multiple places to see their contract data.
Lyncs can consume digital data from contract negotiation platforms and extract data
from legacy contracts, as well as handling contract types such as foreign language agreements and off-platform negotiations.
Once in our platform data is normalised,
allowing analytics and reporting to work across old and new alike.
With output mapping from Lyncs to CDM standards we provide a single, clean source of
data to other vendor platforms as well as in-house builds, with full traceability.