Product Validation.

Good Morning,

This month we focus on product booking operational risk and how LexiFi Apropos allows you to overcome it!

Definition differences between market participants for the same contract are one of the main sources of errors in financial markets. Therefore, LexiFi has invested a lot in automating product booking in the software database and developed several solutions.

Whether you opt for our star feature the PDF Importer -allowing you to drag and drop term sheets to book a product- upload XML files, or manually fill a product template, you should be able to have some control processes in place!

  • How can you check the correctness of a given payoff?
  • How can you cross-check product information?
  • How do you make sure all necessary documents are linked to the product?

Thanks to its integrated architecture, LexiFi Apropos allows users to entirely centralize and automate the product validation process. Many of our clients have opted for an automated workflow.

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Example of a workflow dashboard

Multi-team validation

You may put in place a Product Validation Workflow allowing different teams to validate relevant product features and documents. For example, this multi-stage product approval process allows to:

  • Validate product payoff
  • Generate/attach documents based on the current status of an issue (e.g. terms sheets, KIDs, final terms, summary of terms, etc.)
  • Enrich product information (i.e. ISIN, Registration Number, Risk Rating, payoff parameter confirmation)
  • Request approval from colleagues and departments

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Validate payoffs at maturity for non-path dependent products

LexiFi Apropos generates exact payoff graphs at maturity with reference levels and values. Payoff diagrams are deduced from the contract definition in LexiFi. This enables a quick check of the consistency between the product definition and the corresponding contract.

Validate payoffs with underlying scenarios

Interactively simulate underlying assets' future scenarios simply by dragging the mouse to play around with underlying levels. LexiFi Apropos Graphical Simulation tool provides an intuitive and graphical way to study product cash flows under various market conditions. This tool is used by our clients at issue as well as during product life span to generate Marketing documents for instance.

Learn more about Product Booking tools

Learn more about Workflows

Learn More about the payoff Diagram

Learn More about the Graphical Simulation Tool

Many thanks!

LexiFi team