Compliance and regulations.

Compliance and regulations.

Good Morning,

If you are involved in the creation and sale of OTC derivatives and structured products, you cannot ignore the growing body of statements and actions expected by regulators.

We help our clients respond to regulatory requirements confidently and efficiently. LexiFi Apropos, allows to automate quantitative calculations, reports and document production demanded by regulators.

Our complete set of integrated tools perfectly meets regulatory standards thanks to the interconnection between product definitions and their lifecycle processing, with other quantitative methods.

With LexiFi Apropos, one thing is sure, you can stop worrying about instrument coverage: LexiFi software supports all common asset classes, wrappers and derivative financial instruments.

Turn time-consuming reporting tasks into interactive automated reports: LexiFi reporting tools consist of fully customizable tables with access to all information and quantitative functionalities available in the software’s database. This central reporting utility reduces operational risk and helps you save time!

Users confidently and efficiently produce reports to meet both internal compliance rules and external regulatory standards.

A solution to any quantitative need, auditable pricing results and high-quality support: You have access to back-testing, stress testing/what-if analysis, forward simulations and even value change analysis.

Run valuations, Greeks, stress tests, and Value at Risk. The software provides complete storage of the results and allows to maintain an audit trail.

Each quantitative functionality is a playground: LexiFi Apropos allows you to play around with the parameters as you please.

For the VaR for instance, you could compute Historical or Monte Carlo. You may easily choose of the confidence level, the number of observations, the horizon, or even speed up calculation with the Fast VaR mode. For stress tests, you can play around with the different bricks at your disposal to build different scenarios.

Let us look at few examples

You may not relate to all the following examples as regulatory requirements vary due to the diversity of structured products, types of financial institutions and regional laws. The idea of this section is to give you a feel of what it is like to use LexiFi Apropos to answer regulatory and compliance requirements.

“We input data and then magic happens: an automatic pricing computation. We are not talking about some approximations: results are really precise and reliable.”

Pierre-Yves Druenne, Head of Product Management, Deutsche Bank Belgium

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MIFID: secondary market prices

  • Use LexiFi Apropos pricing tools to crosscheck OTC products' secondary market prices.

  • Get accurate results quickly

  • Save time through the performance of bulk pricings of large portfolios of contracts in a matter of a few minutes

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Money Market Fund Reporting

  • Be well equipped and well-connected thanks to the completeness of LexiFi stress testing tools and the ease of market data integration and connectivity to market data sources

  • Get the flexibility to create any scenario. All scenarios are founded upon “bricks.” These bricks help to create and regroup different shocks (intuitively, small scenarios) within one scenario

  • Choose your stress test results output as you please thanks to the ease of integration of stress test results within custom reporting views or documents. LexiFi reporting tool allows to produce reports and views with any quantitative or qualitative data with LexiFi Apropos

  • Easily export your results in different formats (Excel, CSV, JSON, etc.)

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Solvency Capital Requirement

  • Benefit from the flexibility of risk scenario functionality to create scenarios perfectly adapted to the regulation

  • Access to a wide range of pricing models and assign pricing tags to make your life easier

  • Save time thanks to the speed of LexiFi Apropos pricing engine

  • Display results and model the process over time conveniently thanks to LexiFi’s interactive reporting views

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PRIIPS Key Information Document

  • Save time and generate KIDs in one click

  • Trust the results thanks to LexiFi Apropos robust quant engine. Calculation of SRI, performance scenarios and costs are performed quickly and accurately. And benefit from the support of LexiFi’s quantitative engineers when needed

  • Delegate KIDs updates to LexiFi Apropos and reduce operational risk thanks to an automated identification of required updates and reissue of documents.

  • Updates are instantaneous as the lifecycle management tool is fully integrated with the document generation and quantitative functionalities

  • Customize the documents to your brand in the language you need.

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Let’s wrap it up

One of the main challenges posed by regulatory reporting is the diversity of the data collection sources and the complexity of the quantitative calculations it often requires. This is especially true for reports that connect product definitions and lifecycle events, with other quantitative metrics.

The KID generation is a typical case for using a full-stack solution such as LexiFi. The main technical challenge here is that it 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 PRIIPS specific Value at Risk (VaR) for the financial contract is required. The regulation requires to produce the KID at specific timings following the lifecycle of the contract.

Luckily, the interconnection between product definitions and their lifecycle processing, with other quantitative methods, is one of the main building blocks of LexiFi technology. We have designed tools so that you confidently meet both internal and external regulatory reporting standards.

More about compliance

Many thanks!

LexiFi team