Refining derivatives data for the world’s biggest banks

Refining derivatives data for the world’s biggest banks

A strategic partnership established between Konexo and LIKEZERO is increasing the accuracy of derivatives data used by financial institutions to decrease the risk of global economic and market collapse.

The partnership, which brings together the legal operational capability of Konexo with the next generation contract analysis software of LIKEZERO, has already increased the accuracy and value of derivatives data extracted from thousands of loan-based agreements. It has also reduced costs and time taken to complete data extraction by up to 40%.

A key part of Konexo’s role in this partnership is to review and capture data on bespoke or nonstandard clauses that LIKEZERO’s software surfaces from complex legal agreements. These clauses are vital to extracting invaluable derivatives data used to reduce risk of poor investments that contribute to future economic and market collapse.

Imogen Philp, Director of Client Services Delivery, LIKEZERO, says: “As a technology company dealing in some of the most valued data for global financial markets, we want to leverage human expertise to interpret data, rather than a machine. Our proprietary data mining and matching techniques mean that where data has been captured programmatically it does not need to be checked by a human. We apply human interpretation on those clauses that have not matched, and this ‘intelligence’ is then stored in the system for re-use. That’s why we needed Konexo’s legal operational know-how to be able to continue to refine and grow the breadth of the bespoke clauses we surface for in contracts, providing clients with improved value and trusted data sets.

“Getting accurate derivatives data is vital to reducing risk for banks, private equity firms and investors across markets. At this time, when the globe is tipping towards different and various economic concerns, a partnership such as this can provide those who have their hands on the steering wheel of global economies with better navigational tools to negotiate themselves out of trouble.”

The derivatives data created by this partnership is already being used by clients from the likes of Acadia (formerly AcadiaSoft), a market leading risk management platform for the derivatives industry, enabling over $1 trillion in collateral exchanges daily for over 1,600 firms.

Brett Aubin, Head of Projects, Konexo, says: “The mining of accurate derivatives data will be vital to stable economic recovery across the globe. Having accurate data to be able to confidently draw solid conclusions is critical to banks, investors, and in turn, the wider business community, which is why this partnership is so significant.

“By using our own legal capability to refine the derivatives data that LIKEZERO mines and combining it with our strategic business skills, LIKEZERO is able to concentrate on evolving the software it loves, while we strengthen the foundations and structures of the innovative business it has created. Using Konexo’s legal services model has also cut LIKEZERO’s project costs by 30-40%.

“For us, this is a project that showcases how the right legal operational knowledge can add resilience in any climate. This partnership has a very important place in the future of financial markets and we’re looking forward to building on our relationship with LIKEZERO. ”

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