The IBOR reform and the resulting transformation towards a new system of reference interest rates imposes a fundamental change on markets and market participants.
A key component of the overall challenge towards a successful transformation is a robust fallback and contract management. Many relevant contractual parameters, such as fallback provisions and transactional data, are usually not centrally and digitally available. A solution tailored to this specific problem creates transparency and process reliability. In addition, it reduces operational expenses as well as legal risks.
LPA supports the industry in successfully managing the transformation as an IBOR specialist and experienced advisor. At the same time, LPA is a leading technology company with extensive knowledge in maintaining and managing contractual agreements for financial products. In this context, we develop specific fallback management solution with our clients.
- Accurately and efficiently adjust contracts and templates – We identify the need for required contract adjustments. We design and develop a customized and workflow-based adjustment process and support an efficient implementation.
- Build for the future – As a technology provider we are determined to use our innovative software solutions to improve and design processes that will strengthen financial institutions for future challenges. Together we will work on the design and implementation of a concept that will contribute to a sustainable digital solution for the management of contractual data, the automated creation of contracts and continuous exposure monitoring.
- Apply fallbacks – You can manage rate cessations and automatically trigger contractual changes using LPADoc.
- Analysing and reviewing existing contracts – We review and analyse your existing business focusing on the extraction of relevant transactional data and fallback provisions.
As a reliable partner and expert for digitalisation as well as process and document automation, we support you in the design and implementation of an efficient and sustainable IBOR fallback management solution. At the same time, we consider all relevant requirements for a sustainable digitalisation strategy and a solid contract management approach. Contact us now.
Since July 2015 Andreas Hock has been a manager at LPA in the Risk & Quant Consulting team. Before that, he studied mathematical finance at the Technical University of Munich and gained his first consulting experience at PwC. Here at LPA, he now deals with quantitative topics relating to the valuation of financial instruments, regulatory requirements and digitalisation.