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 services.
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 structured products offered by Lombard Odier.
The video interview below with Frederic Lehner, Vice President - Structured Products Advisory at Lombard Odier, gives an overview on LexiFi Apropos’ use cases within the bank.
"During the 10 years since we adopted LexiFi, the number of structured products issued has been multiplied by 5 while the number of staff has remained constant."
Frederic Lehner, Vice President – Structured Products Advisory at Lombard Odier
Lombard Odier streamlined operations and improved its pre- and after-sale advisory capacity. LexiFi’s system demonstrated its ability to manage diverse product offerings, complex workflows, and growing volumes.
Efficient Workflows
The solution has been easily integrated within the bank’s work environment providing users with a central system for derivative investments management. LexiFi Apropos provides a single source of data and services for structured products. Users can generate, access and compute any type of contract or portfolio information, from simple identification data to complex quantitative information.
LexiFi Apropos meets the needs of the trading and risk management functions through the following capabilities:
"LexiFi allows us to automate important workflows such as: customer confirmations, in-house term sheet generation, technical emails that are part of the operational process, and commission collection requests,
to cite a few."
Frederic Lehner, Vice President – Structured Products Advisory at Lombard Odier
Document Generation and Reports Flexibility
Lombard Odier uses LexiFi Apropos to automate the periodic production and distribution of performance reports.
The Bank chose to control the process from end to end: LexiFi trained Lombard Odier users on the solution’s document template creation and production tools. In a matter of days, users were able to independently design and generate high quality, content-rich performance reports.
Users generate product-specific reports that summarize terms and conditions, including the precise description of contracts’ economics, display the product performance and that of underlying assets in both tabular and graphical forms. The tool allows to produce charts of the realized volatility of underlying assets through time, report metrics such as the distance to a barrier or a strike level and keep track of lifecycle events.
"The simplicity and flexibility of LexiFi’s document templates is unbeatable and has no equivalent in the market. Documents can be perfectly adapted to any operational process."
Frederic Lehner, Vice President – Structured Products Advisory at Lombard Odier
Quantitative Excellence
Product design and sourcing: LexiFi Apropos’ structuring tools help Lombard Odier’s primary market team promote an active dialogue with clients seeking tailored investment solutions. 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: The 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.
Lifecycle Management: LexiFi Apropos allows to keep track of events such as coupon payments, barrier crossings, early redemptions, and corporate actions. Users monitor metrics such as the distance to a barrier or strike level, compute the likelihood of events such as early redemptions and manage lifecycle events as they occur.
"It takes less than 10 minutes to calculate the Value at Risk for an entire book of 800 products, on a standard computer machine."
Frederic Lehner, Vice President – Structured Products Advisory at Lombard Odier
Favorite Tools
QUICK FACTS
Name: Lombard Odier
Industry: Asset Management, Wealth Management
AUM: CHF 310 billion AUM as of June 2022
Website: https://www.lombardodier.com
ABOUT LOMBARD ODIER
Lombard Odier is a wealth and asset manager figuring among the global leaders in sustainable investing. For over 225 years, and throughout over 40 financial crises, the Group has combined innovation and prudence to remain aligned with the long-term interests of its private and institutional clients.
Exclusively owned by its Managing Partners, it has a solid, liquid, and prudently invested balance sheet, with a CET1 ratio of 28.5% and a Fitch rating of AA-. Lombard Odier offers a full range of asset management services, including wealth planning, advisory and portfolio management services, and securities custody. The asset management offering is provided by Lombard Odier Investment Managers (LOIM). The Group has also developed state-of-the-art banking technology solutions that are used by other private banks and financial institutions in Switzerland and Europe. Headquartered in Geneva since 1796, the Group had 26 offices in 21 jurisdictions at the end of December and employed 2'650 people.