Structured product market participants need a single source of truth for their product portfolio: one product database with all their structured investments that can be easily explored along all relevant axes with simple keywords. To achieve this, there are some technical constraints and practical conditions: the tool should generically support all types of products, and the booking process should not be a pain. Otherwise, some products would inevitably cause IT dependence or end up in Excel spreadsheets.
Booking structured product parameters exhaustively can be tedious and error-prone. When product booking workflows lack structure and automation, errors start to pop consuming time and manpower. On the other hand, inflexible solutions where users would need IT support for any product off the beaten track, usually make things even worse.
LexiFi’s clients have a whole different experience. Please find below some excerpts from LexiFi’s client stories:
SILEX Partners: client story coming soon: “One of the most interesting Key Performance Indicators (KPIs) of LexiFi Apropos implementation is the reduction of booking errors. A structured product can represent as many as 50 attributes that have to be precisely booked to get the expected payoff behavior. This, in the past, resulted in many product booking inefficiencies. Today, thanks to LexiFi Apropos we have reduced our booking errors by at least 80%. The solution has brought significant productivity gains as we could reposition some of our employees from booking tasks to added-value missions. We can now spend more time on enhancing our wealth management digital tools to help our clients gain time and efficiency at their end.”
Garantum: “Since the adoption of LexiFi Apropos, Garantum teams have more time to focus on added-value tasks: Less time in registering products in a system and more time in actual product development More time to work with topics that enhance client service quality.”
Federal Finance: “Many tasks and reports were successfully automated with the help of LexiFi’s technical teams who carefully listened to Federal Finance Gestion’s needs and provided guidance, developments, and support. Some examples of automated tasks include: Automatic import of all contracts: all kinds of bonds, futures, options, and equities directly from data providers with automatic creation of new contracts, new underlying assets, and new parties.”
“LexiFi allowed us to significantly reduce the time spent on booking complex structured products thanks to the PDF importer.”
Alexis de Bernis Chief Technology Officer at SILEX
LexiFi Apropos allows booking any product type from complex to vanilla with any major underlying asset class (Equity, Interest rate, Inflation, Foreign exchange, Commodities, Credit). Users not only access automatic booking tools such as their favorite PDF Importer to define products but also benefit from specific product templates for all product types. For ad hoc products, users can turn to LexiFi’s generic product templates such as the DIY (Do it Yourself) template.
Whether users opt for automated PDF or XML imports, tailored APIs, or manual booking templates, LexiFi allows cross-checking the booking process. To verify if a given product behaves as expected, users access a wide variety of static and interactive simulation tools. For pre-trade processes, some clients have put in place multi-team validation workflows to check the payoff, generate legal documents, add information such as the ISIN, and request approval from relevant parties.
Other useful tools to check product payoffs include the Payoff Diagram (for non-path-dependent products) and the Graphical Simulation tool. The latter is an interactive tool allowing users to play around with underlying performances over time and instantly find out the resulting cash flows on the product. Please refer to our Product Validation Monthly Focus to find out more about this topic: Product Validation Workflow
|What we're reading||Blog post: Complexity explained
Forbes: Structured Finance Offers New Options For Investors
|What we're watching||LexiFi's previous sarcastic season's greetings video during this pre-holidays season's rush!
By the way, the episode 2 is in the making...
Watch the video
|Related client stories||
SILEX: coming Soon!
GARANTUM: LEXIFI APPROPOS ALLOWS BOOKING ALL DIFFERENT PRODUCTS IN ONE SYSTEM
FEDERAL FINANCE: LEXIFI APPROPOS IS A SOLUTION ALLOWING TO AUTOMATE, CENTRALIZE AND AUDIT: REPORTING, VALUATION, AND RISK MANAGEMENT
|Features in focus||Structured products definition
PDF termsheet Importer of structured products
Structured investments payoff diagram
Connectivity and APIs