Deloitte, the business advisory firm, today announced an alliance with Recommind, a leader in information intelligence, to deliver a managed service to investment banks, transforming the way Over-the-Counter International Swaps and Derivatives Association (ISDA) agreements are managed.
The new offering will consist of a Deloitte service wrapping around Recommind’s Perceptiv Derivatives Contract Analysis technology in the firm’s managed service layer to ensure optimal service delivery. The SaaS platform handles the process of sifting through thousands of counterparty agreements to identify the data traders need to drive profits, including eligible collateral, interest rates, termination events, netting, thresholds and independent amounts.
“The notional amounts outstanding of OTC derivatives stood at over $690 billion at the end of 2014. Supporting this are countless contracts and millions of data points, which until now have largely been handled manually by large teams within organisations. That process is not only time intensive but the margin for error is huge. We launched Perceptiv Derivatives Contract Analysis, a sophisticated machine learning technology, to reduce manual processes, improve regulatory compliance and reduce costly human error,” commented Bob Tennant, CEO, Recommind. “This partnership offers investment banks the best of the technology and consulting worlds in a managed service that will redefine OTC contract analysis.”
“Under Dodd-Frank, EMIR and Basel III investment banks are required to have a much more granular view of their data and this requires a change in the way information is managed within large financial institutions,” said Katelyn Brown, Partner, Deloitte MCS Limited. “OTC derivatives contracts in particular are made up of hundreds of data points. Errors that creep in during manual processes not only lead to regulatory headaches but also substantial financial losses. Working with Recommind will allow us to improve the way our customers’ OTC Derivatives Contracts are managed, speeding up the process and eliminating human error to optimise profit and mitigate risk.”