A&O, IHS Markit and SmartDX launch tech solution
April 19, 2018

International law practice Allen & Overy, business information provider IHS Markit and SmartDX from customer communications management specialist Smart Communications, say they have come together to launch Margin Xchange, a new product for the derivatives market.

They describe Margin Xchange as an online platform that covers all stages of the mass repapering of derivatives contracts required to comply with Initial Margin (IM) regulations.  It provides information reconciliation, document generation, negotiation and execution, case management and a full data export. It not only drives greater cost and time efficiency in the process for agreeing the documents, but also achieves the long-held goal of treating derivative documents as data, by using a document format that is human and machine readable, the trio add.

IM regulations are already affecting around 40 bank groups globally, but that number will explode in 2019 and 2020 as hundreds of new counterparties are brought in scope, they continue. Margin Xchange has been designed to process the high volume of new negotiations and the extension of IM requirements to buy-side entities, catering for the operational challenges connected with umbrella agreements covering multiple funds and multi-manager funds. 

Margin Xchange puts the entire process on to a single online platform. It enables counterparties to bulk import and reconcile counterparty data, mass upload and agree their term sheets, generate and customize all IM documents, run all negotiations and drafting, execute by electronic signatures and capture the full audit trail of every negotiation point, internal escalation and sign-off. 

Crucially, users will be able to record every variable as a data point, rather than text, enabling them to maintain a clear view of progress at every stage during the repapering task, provide higher quality progress reports to regulators and represent the documents as data that can be stored and interrogated in the future with ease.

Development of the service was led by David Wakeling, derivatives partner at Allen & Overy in London.





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International law practice Allen & Overy, business information provider IHS Markit and SmartDX from customer communications management specialist Smart Communications, say they have come together to launch Margin Xchange, a new product for the derivatives market.

They describe Margin Xchange as an online platform that covers all stages of the mass repapering of derivatives contracts required to comply with Initial Margin (IM) regulations.  It provides information reconciliation, document generation, negotiation and execution, case management and a full data export. It not only drives greater cost and time efficiency in the process for agreeing the documents, but also achieves the long-held goal of treating derivative documents as data, by using a document format that is human and machine readable, the trio add.

IM regulations are already affecting around 40 bank groups globally, but that number will explode in 2019 and 2020 as hundreds of new counterparties are brought in scope, they continue. Margin Xchange has been designed to process the high volume of new negotiations and the extension of IM requirements to buy-side entities, catering for the operational challenges connected with umbrella agreements covering multiple funds and multi-manager funds. 

Margin Xchange puts the entire process on to a single online platform. It enables counterparties to bulk import and reconcile counterparty data, mass upload and agree their term sheets, generate and customize all IM documents, run all negotiations and drafting, execute by electronic signatures and capture the full audit trail of every negotiation point, internal escalation and sign-off. 

Crucially, users will be able to record every variable as a data point, rather than text, enabling them to maintain a clear view of progress at every stage during the repapering task, provide higher quality progress reports to regulators and represent the documents as data that can be stored and interrogated in the future with ease.

Development of the service was led by David Wakeling, derivatives partner at Allen & Overy in London.



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