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Private Banks

Distribution of Structured Investment Products

LexiFi has developed an integrated solution for the distribution of structured investment products. LexiFi addresses the needs of private bankers who wish to offer investment solutions adapted to each market environment, to provide quality advice throughout the life of each product, to control issuer prices, to centralize the management of products, orders, and trades, and to streamline a variety of time-consuming and error-prone pre- and post-trade processes.

The LexiFi solution handles the diversity inherent in structured products in a uniform way. The system enables the creation and the maintenance of a central product database covering a multitude of payoffs and underlying assets, provides structuring as well as ongoing valuation capabilities, records client orders and trades, rationalizes the production of term sheets and customer reports, and automates the management of contract events and the monitoring of barriers.

LexiFi’s complete, out-of-the box solution enables the timely delivery of investment solutions, enhances customer service throughout the life of each product, and streamlines the operations of private banks that source, market, sell, and process structured products.

7 Reasons to Use LexiFi for the Distribution of Structured Products

Product Database
Create a central database of structured products with detailed terms and conditions. Product information is organized, filtered, and sorted using dozens of pre-defined and user-defined attributes.
Product Attributes

Each product exposes a set of attributes that are either static or change through time (e.g., the accrued interest).

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Users create custom displays that present pertinent information for each product category.
Fast Product Search

Pre-defined filters and a search capability allow users to quickly zoom in on the relevant products.

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Customer Documents
Generate term sheets, product reports, and event notices in a variety of formats, including Microsoft Word, PDF, and XML.
Sales and Marketing Documents

Automatically create term sheets and other sales and marketing documents.

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Valuation with Industry-Standard Models
Estimate the value and risks of a product with proven implementations of industry-standard pricing models relevant to structured investment products, including:
  • Black-Scholes with volatility term structure or single volatility (Monte Carlo, PDE)
  • Local volatility (Monte Carlo, PDE)
  • Heston stochastic volatility (Monte Carlo)
  • Hull-White short rate, 1 factor, with volatility term structure (Monte Carlo) or single volatility (Monte Carlo, PDE)
  • Hull-White short rate, 2 factors (Monte Carlo, PDE)
  • LIBOR Market Model (Monte Carlo)
  • Garman-Kohlhagen (Monte Carlo)
  • Hybrid Black-Scholes / Hull-White short rate, 1 factor (Monte Carlo, PDE)
  • Hybrid Black-Scholes / Garman-Kohlhagen (Monte Carlo)
Each model implementation is delivered with related calibration algorithms and supports, when applicable, single or multiple underlyings, discrete and continuous dividends, a quanto adjustment, and American Monte Carlo techniques based on the Longstaff-Schwartz method for valuing path-dependent, callable products.
Structuring
Quantify the risks and rewards of both new and existing products with a collection of analytics.
Historical Simulation

Compare the performance of a structured product to that of its underlying assets for a range of historical acquisition dates.

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Simulation and Pricing

Analyze the behavior of a contract along one or more forward-looking market scenarios and calculate its residual value on future horizon dates.

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Central Access to Market Data
Access market data snapshots and historical time series from a central location to ensure consistent valuations and analyses across products.
Ongoing Control of Valuations and Performance, Monitoring of Barriers
Compare issuer prices and theoretical values calculated with a pricing model, control the performance of both products and underlying assets, and monitor continuous and discrete barriers.
Alerts

Customize your displays with alerts in order to monitor a number of metrics such as the current distance to a continuous barrier.

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Product Details

A drill-down feature gives access to detailed product and underlying information.

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Product Maintenance
Detect and process life cycle events such as payments, fixings, option expiries, barrier crossings, and equity corporate actions. Product definitions adapt automatically in response to such events.
For more information about LexiFi's products and services please send an e-mail to info@lexifi.com or call +33 1 47 43 90 00 (Paris)