The third and final article in the Reformis series on the ISDA Common Domain Model has been published, with the focus this time on the collateral management capabilities of the CDM. Industry experts, including Logical Construct’s Paul Kelly, provide their thoughts on how a better data strategy is key to streamlining collateral management processes. https://www.reformis.com/insight-the-isda-common-domain-model-cdm-part-3/ Read more about Reformis article on the ISDA CDM[…]
The fact that this year the AGM operated as a virtual conference is perhaps a fitting backdrop for the push towards digitisation in the derivatives markets. While obviously lacking the easy networking that naturally comes from in-person events, the content delivery itself worked very well. It had a more global feel – with speakers and Read more about Digitisation highlights at the ISDA AGM[…]
Putting it all together – ISDA Collateral toolkit, Common Domain Model, Clause Library, Smart Contracts. Back in 2013, Paul Kelly and I documented the state of negotiated ISDA documentation and the challenges it posed for the negotiation and onboarding processes as well as the high cost to derivatives participants – see Million Dollar Spreadsheet. Winding Read more about The future of derivatives, securities lending and repo contract flows[…]
The legal industry is ripe for an injection of modern technology and that has not gone unnoticed by myriad start-ups all vying to bring the revolution. Creating better ways of doing things is often the easy part; the culture shift required for adoption is much harder, particularly when dealing with a profession steeped in tradition. Read more about The future of financial contract documentation[…]
Margin reform regulation requires non-cleared derivatives users to repaper their ISDA documentation.
Vendor offerings exist to address client outreach through renegotiation, including smart, rule driven solutions that cover document assembly and metadata recording at point of authoring.
Few are addressing how this co-exists with legacy documentation, or allows new documents and contracts authored elsewhere to be captured.
Industry utilities are fast becoming the new reality in the post financial crisis banking arena, with Know Your Client (KYC) and Collateral Management initiatives already in progress. The main driver behind this utility model is improved operational efficiency and the associated cost savings, yet many large financial institutions have yet to break through the misconception that ‘inside the firewall’ is always safe and ‘cloud’ is always bad.
The EU regulation on securities financing transactions requires new disclosures for collateral that can be reused to provide additional awareness of the risks that this can cause to collateral providers with complex collateral ‘chains’ (see Article 15).
In early March the European Banking Authority (EBA) published a consultation paper outlining draft regulatory standards for the minimum set of data that institutions should hold on their contracts within the European Union.
1. Unwitting ‘standardisation’ – the temptation to knock a few edges off a square peg and squeeze it into the round hole provided in the data capture platform, to avoid yet another agreement that’s ‘stuck’, waiting for an upgrade to the application. Of course it will be the provisions where transparency is key that will be swept under the carpet in this way.
Our pilot programme is now available – if you would like to see what the new world of contract data management looks like please contact us to request a demonstration and register interest in a pilot.