Getting your Derivatives Data ready for Dodd-Frank
The Dodd-Frank Wall Street Reform and Consumer Protection Act and recent FSA regulations have put pressure on investment banks and buy-side institutions to consider new methods to manage both legacy and new master agreements (ISDA, CSA, GMRA, GMSLA, IFXCO etc.).
After the financial meltdown of 2008 it became clear just how important it is to have:
- an ongoing understanding of how ISDA master agreements will be affected by the distress or failure of a counter-party or deteriorating market conditions
- the ability to gain quick and comprehensive access to the data embedded in these agreements if those circumstances arise.
Having improved access to critical information and the ability to model contract portfolios against negative events will enable institutions to improve risk controls and operational processes – and ultimately advance the organization’s ability to make more informed decisions.
The current ‘cut and paste’ process that most documentation departments are using currently to produce these agreements is time-consuming and doesn’t provide access to the data contained in them. There is no way to access or record the documentation data without ‘scrubbing’ or rekeying the data into downstream systems. And most importantly, there is little if any visibility across the entire portfolio of agreements.
By automating the creation of master agreements, you can capture every piece of data, making it readily available for reporting and analytics. You can improve risk controls, operational processes and the ability to make mission-critical decisions better and faster.