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
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Product Database
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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.
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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.
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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
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Generate term sheets, product reports, and event notices
in a variety of formats, including Microsoft Word, PDF, and XML.
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Sales and Marketing Documents
Automatically create term sheets and other sales and marketing documents.
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Valuation with Industry-Standard Models
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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.
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Structuring
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Quantify the risks and rewards of both new and existing
products with a collection of analytics.
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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
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Access market data snapshots and historical time series from a central location
to ensure consistent valuations and analyses across products.
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Ongoing Control of Valuations and Performance, Monitoring of Barriers
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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.
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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
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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.
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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)