The challenge

A leading European bank (‘the client’) needed to extract key terms from Netting Summary documents, across 100+ jurisdictions. Many banks struggle to understand whether they are entitled to net trades in the derivative market. This forces institutions to make expensive decisions in terms of RWA. Providing systematic netting data to a wide range of stakeholders is a widespread problem, and one which the client was faced with.

Our response

We built a “Golden Source” of netting data, which mapped these summaries to the underlying master agreement and generated reports on netting applicability, covering the below scope and delivering the below outcomes:

Business outcomes

• Provided a completed view of netting visibility by counterparty and product for each jurisdiction by collecting data across counterparty type, in scope of transactions and all netting carve outs.

• Enabled the bank to assess if ISDAs are following Netting recommendations.

• Linking Netting Summaries to their related ISDA Master agreements.

• Straight through processing for future updates.

• Established Business as usual (“BAU”) service to manage updates to netting summaries to ensure all users have the most up to date information across CSA, Repos, Sec Lending etc. covering all 100 jurisdictions.

Technical outcomes

• Created and customised the data model with new terms, attributes, and enumerations.

• Provided the bank with in and outbound data automation feeds via API.

• User interface for monitoring and analysing captured data.

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