Compliance and regulatory requirements

The growing complexity of regulation is often a source of headaches in the derivatives and structured products industry. Fortunately, LexiFi Apropos’s integrated approach takes on its full meaning in the current regulatory environment.

The interconnection between product definitions and their lifecycle processing, with other quantitative methods, is at the core of the technology. It perfectly meets recent developments in European regulations, such as EMIR or the PRIIPS regulation.

In EMIR independent product valuations are to be performed by distributors and LexiFi Apropos’ powerful pricing engine accelerates value creation through the performance of bulk pricings of large portfolios of contracts in a matter of minutes at any time.

Generate regulatory documents on the fly. The production of PRIIPS’ KIDs for example requires a mix of contract and calculation-based information: on top of the standard information that must be provided, a quantitative analysis built upon the computation of a Value at Risk of the financial contract is required. Such a computation is complex because regulation requires product manufacturers to be able to produce the KID at any point in time following the lifecycle of the contract. LexiFi Apropos reduces these regulatory concerns to child’s play: the software provides a complete storage of the results and allows to replay actions exactly as they were in the past which helps in maintaining an audit trail.

Use the built-in Document Generation tool to create those documents. Do not worry about any loss of generality: the software’s functionalities are available for any contract, at any time. Users benefit from the potential of the optimised calculation engine and are able to integrate the information into an automatically-generated document. Your time is your most precious asset, and in a matter of seconds, LexiFi Apropos produces regulatory-compliant documents on a full portfolio of contracts.

In addition to bringing an infallible answer to external regulatory pressure, LexiFi Apropos provides the tools to efficiently meet internal compliance requirements and to streamline operations. The automation of the production of compliance documents such as stress tests speeds up business processes while reducing the level of operational risk.

We believe that this level of flexibility is of particular importance for members of the industry, subject to a rapidly evolving regulatory environment. What matters is not only which features are available today, but also how the overall architecture will support future business and regulatory requirements. LexiFi Apropos is uniquely well equipped to provide such investment protection against future uncertainty and many long standing happy customers prove that we delivered this investment protection in the past.

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Figure 1: KID created with LexiFi Apropos’ document generator

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Figure 2: Stress test document created with LexiFi Apropos’ generator

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