In the spring of 2010, Lombard Odier and LexiFi teamed up to automate the management of the Bank’s structured products activities and further improve pre- and after-sale service.

Lombard Odier implemented LexiFi Apropos software to automate the management of its structured products activities and further improve pre- and after-sale service. LexiFi Apropos has become a key asset underpinning the Bank’s strategy of pursuing client satisfaction by offering customized investment solutions: the system covers all core processes related to the design, pricing, delivery and management of internal and external structured products offered by Lombard Odier.

"LexiFi Apropos brings together all data and services needed to support Lombard Odier’s structured products business: the system has coped well with the growth and diversification of our activities, a testimony to its sound design"
Eric Mangin, trader at Lombard Odier

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With LexiFi Apropos providing a single source of data and services for structured products, Lombard Odier streamlined operations and improved its pre- and after-sale advisory capacity. LexiFi’s system demonstrated its ability to manage an increasingly diverse product offering, complex workflows and growing volumes:

  • Product design and sourcing: LexiFi Apropos’ structuring tools help Lombard Odier’s primary market team to promote an active dialogue with clients seeking tailored investment solutions. LexiFi Apropos increases the productivity, situational fluency and comfort levels of client-facing personnel and reduces the risk of misrepresentation by encouraging the provision of fact-based advice. Once the client and the Bank agree on the main terms of an investment, the system’s advanced pricing capabilities help the Bank control the sourcing of the product and potentially challenge counterparty prices.

  • Secondary market control: Lombard Odier’s secondary market team monitors the Bank’s structured products portfolio using LexiFi Apropos’ interactive displays. Users track the performance of products and underlying assets, control that issuer prices match internally calculated prices and receive alerts when selected metrics diverge from a user-defined threshold. LexiFi Apropos also allows the secondary market team to manage contract events as they occur. Moreover, the software updates product definitions automatically in according to those events.

  • Performance reports: Lombard Odier uses LexiFi Apropos to automate the periodic production and distribution of performance reports, previously a time-consuming process. Lombard Odier distributes generated reports to stakeholders through a secure web site. The Bank chose to control the process from end to end: LexiFi trained Lombard Odier’s users on LexiFi Apropos’ document creation and production tools. In a matter of days, users were able to independently design and generate high quality, content-rich performance reports.

  • Issuance of structured products: Lombard Odier and LexiFi collaborated to design and validate new features, system interfaces and workflows. LexiFi Apropos meets the needs of the trading and risk management functions through the following capabilities:
    • Recording of initial terms and conditions
    • Primary and secondary market pricing
    • Publication of end-of-day prices
    • Support for actively managed trackers
    • Management of corporate actions and other contract events
    • Retrieval of positions from an in-house system where primary and secondary market orders are stored
    • Ongoing hedge calculations taking into account already executed hedges; integration with an in-house order management system to channel hedge transactions to execution desks
    • Real-time monitoring of risks and risk limits

    Name: Lombard Odier
    Industry: Asset Management
    AUM: CHF 287 billion AUM as of June 2019
    Website: https://www.lombardodier.com/home/

    Founded in Geneva in 1796, Lombard Odier Darier Hentsch & Cie is the city’s oldest firm of private bankers and one of the largest in Switzerland and Europe. With a network of 25 offices in 18 countries, the Bank offers a wide range of advisory services in wealth management, financial products and specialized areas to private and institutional clients. Lombard Odier holds the special status of “private banker”, a term that distinguishes banks in Switzerland who provide private asset management services under the ownership of one or more partners with unlimited liability for the bank’s commitments.

    Lombard Odier manages discretionary mandates and advises experienced investors who wish to manage their own allocations. The Bank has developed strong capabilities in structured products to help in-house wealth managers and independent investors to expand their investment universe and build diversified portfolios.

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