Financial institutions have struggled in their effective management of legal documentation as a source of reference data for onward consumption. Terms and values of key data points required by downstream consumers are often manually extracted multiple times by consumers, often inconsistently and even inaccurately. In the OTC derivatives market for example, the ISDA documentation is complex and downstream consumers such as those modelling collateral for capital purposes and CVA desks, require very granular data.
In the increasingly regulated world, with new regulations such as MIFID II, QFC, MRUD, GDPR, Basel IV, and EMIR, the manual extraction of data points across these legal documentation portfolios is clearly inefficient and costly. Structured data and technology assisted solutions are required, such that the addition of an extra data point is seamless and does not require a fresh review of the entire document portfolio.
D2LT is also actively involved in industry initiatives to structure data more effectively which will also serve to enhance a firm’s ability to leverage technology to use the data efficiently.