Choose your favorite way to input a product amongst LexiFi Apropos’ many options.
LexiFi Apropos has been designed from the ground up to accurately record terms and conditions of tailored products and consequently generate their precise definition. Thanks to this unique definition, countless out-of-the-box financial structures based on any type and combination of underlying assets are available and can be managed, analysed and priced from inception to maturity in trading-quality entry screens. The product definitions evolve and adapt automatically in response to lifecycle events so that the definition always reflects the current state of the contract.
Definition differences between market participants for a same contract are one of the main sources of error in financial markets. Therefore, LexiFi has invested a considerable amount of resources in automating the input of financial products in the software database and developed several solutions.
An integrated PDF Importer available for a wide list of issuers allows users to drag and drop PDF termsheets directly in the software and automatically create the corresponding product in the system. This tool is constantly improved and the list of supported issuers is regularly expanded.
Users can leverage LexiFi’s import/export functionalities to bulk import full portfolios of contracts in Excel, xml, csv or textual formats. The import feature is available for the creation of new contracts as well as the synchronisation of existing products.
The most efficient way to decrease operational risk regarding product definition is to implement a solution from the beginning of the product line. LexiFi is thus working with some issuers, who are now able to directly provide their customers with the xml LexiFi version of traded products.
LexiFi Apropos uses entry screens called ‘Instruments’ in order to manually define products. The software comprises two kinds of instruments:
A long list of specific instruments
A few generic instruments to allow users to define and process ad hoc or complex products without having to ask LexiFi to extend or develop a new instrument. An example of generic instrument is the user defined DIY (i.e. “Do It Yourself”). The DIY is an instrument based on periods, events and/or formulas.
Conceptually, the difference between ‘specific’ and ‘generic’ instruments is small: both have a set of parameters (e.g. maturity date, denomination, complex schedules, business rules, etc…); but the former typically have ‘standard’ parameters, while those for the latter may be more complex, which are often Excel-like expressions with access to many ‘primitives’. This allows the expression of new complex structures with the power of a scripting-like approach, without its drawbacks. Both types of instruments are mapped to the same formal contract algebra specification, so that all treatments are subsequently identical for both approaches.
The application also contains a notion called Product Types, which customises existing instruments with a predefined set of parameters. It constitutes a useful feature in the context of generic instruments such as the DIY.
The variety of products that can be defined in the application is so wide that it is almost impossible to provide an exhaustive list. We can, however, provide a record of the most common products traded by our clients.
Please note that nearly all our instruments can be used with any of the following underlying forms:
Hybrid structures (combination of different kinds of underlyings).
Some of our specific instruments, with different variations, are the following:
Capital Protected: single/multi underlying(s), basket, multi-basket, cap, put spread, bonus, Asian performance, up and out, rebate, quanto, compo, lookback strike, rainbow, callable, putable
Interest Rate Note, steepener, flattener: fixed rate, floating rate, interest rate spread, inflation, scaled interest rate, formula, autocall on coupon sum, callable, putable, cap, floor, spread
Range Accrual Note: floating rate, interest rate spread, inflation, scaled interest rate, formula, autocall, callable, putable, cap, floor, spread
Interest rate switchable: fixed rate, floating rate, interest rate spread, inflation, scaled interest rate, formula, issuer or investor switch
Switcher Growth: switchable product from equity, index, commodity to interest rate, issuer or investor switch
Autocall: single/multi underlying(s), basket, multi-basket, continuous/daily/final or no barrier, firm or conditional coupon with fixed rate, floating rate, formula, memory effect, quanto, compo, phoenix, range features for bonus coupon, step-down, etc.
Reverse Convertible: single/multi underlying(s), basket, multi-basket, continuous/daily/final or no barrier, coupon with fixed rate, floating rate, formula, callable, putable or autocall on coupon sum, quanto, compo
Callable Stability Note: single/multi underlying(s), basket, multi-basket, continuous/daily/final or no barrier, coupon with fixed rate, floating rate, formula, autocall with immediate payment, callable, putable, autocall on total coupon, quanto, compo
FX Accumulator: payment in different currencies at maturity, continuous/daily/final or no barrier, early redemption features
Equity Accumulator/Decumulator: single underlying, continuous/daily/final or no barrier, single strike or up and low strikes, guaranteed periods and leverage
FX Option: call/put, KI, KO, one touch, digital
Bonus: single/multi underlying(s), basket, multi-basket, continuous/daily/final or no barrier, quanto, compo, participation
Booster: single/multi underlying(s), basket, multi-basket, continuous/daily/final or no barrier, quanto, compo, participation, cap, callable, putable
Twin Win: single/multi underlying(s), basket, multi-basket, continuous/daily/final or no barrier, quanto, compo, participation, cap, autocall, step-down
Himalaya: multi underlying, multi-basket, quanto, compo, participation, Asian performance
Swaps: support multiple currencies, inflation and overnight rates, rate interpolation for stub periods, etc.
Swaption: support multiple currencies
CDS, CDS Option, CDS Tranches
Credit Linked Note, CLN Tranche: multiple credit references, recovery rate, fixed rate, floating rate, interest rate spread, inflation, scaled interest rate, formula, floor, cap
Dual Currency Deposit
FX Target Redemption Note: forward, accrual, dual, pivot
Exotic Option: cross asset, one touch, no touch, digital, multi knock in/out - up/down, cliquet
Compound Option: use a defined product as an option underlying
Multi-Leg: combine different products in one structure
The flexibility and the power of the technology behind LexiFi Apropos empower users to quickly define new structures without writing any code and easily design distinctive investment, financing and risk transfer solutions, with analytical tools quantifying their risks and rewards.