Innodata launches docGenix division
13 July 2011 New York
Image: Shutterstock
Innodata Isogen has announced the launch of a new division, docGenix, , providing software products and services that help financial institutions manage large portfolios of legal and trade agreements.
docGenix provides web-based applications that enable financial services firms to generate, negotiate, monitor and analyse the negotiated provisions of Master Agreements and Credit Support Agreements published by the International Swaps and Derivatives Association as well as financial and legal documentation relating to repos, securities lending, prime brokerage, investment management and clearing.
Using the docGenix product suite, firms can proactively manage risks embedded in these documents - such as ratings downgrade and Net Asset Value triggers - by performing deep portfolio analysis and stress tests. The docGenix applications also provide Web Services data feeds designed to interface with in-house applications (such as collateral and risk management systems) as well as third party systems (such as swap data repositories).
The docGenix applications and data feeds are enabled by an XML data model that represents derivatives and other financial/legal documents as computer-readable algorithms. This XML data model was developed over the past several years and represents over 27,000 man-hours of development by finance lawyers and XML architects. It contains a standardized yet flexible reference model of the universe of legal and financial terms utilized in Master Agreements, Credit Support Agreements and other financial agreements.
Since financial services firms typically warehouse large portfolios of Master Agreements, Credit Support Agreements and other financial documentation as images or PDFs, docGenix provides a fully managed service to digitize the documents at high accuracy levels and then analyze and extract critical data elements using specially trained staff and technology. Recently, Innodata had on staff over 800 attorneys performing data extraction from complex legal documentation.
"The problem with a large portfolio of legal agreements is that critical data contained within the agreements is effectively obscured," stated Jack Abuhoff, Innodata CEO. "Take, for example, a major financial institution with billions of dollars of risk in several thousand derivatives contracts - if there's a general market deterioration or if even just one of their counterparties fails or even just begins to deteriorate, the institution could lose tens of millions of dollars in the time it takes to have their lawyers read and analyse hundreds of pages of complex legal documents. With a docGenix data solution, not only can the institution react quickly with certainty - it can even be "war gaming" in advance, testing its portfolio under different scenarios. Moreover, the docGenix approach will enable institutions to future-proof against anticipated reporting requirements.
"The Financial Crisis Inquiry Commission noted in its 2011 Report1 how the existence of millions of opaque derivatives contracts governed by Master Agreements and Credit Support Agreements between systemically important financial institutions triggered a panic that resulted in the failure of prominent financial institutions and costly government-sponsored bailouts. It is therefore not surprising that the April 2011 CFTC and SEC Congressional Study2 under the Dodd-Frank Act suggested that information contained in Master Agreements and Credit Support Agreements may also be used by regulators for the analysis of systemic risk. The docGenix approach will enable institutions to future-proof against anticipated reporting requirements in addition to proactively managing their credit and legal risk."
docGenix provides web-based applications that enable financial services firms to generate, negotiate, monitor and analyse the negotiated provisions of Master Agreements and Credit Support Agreements published by the International Swaps and Derivatives Association as well as financial and legal documentation relating to repos, securities lending, prime brokerage, investment management and clearing.
Using the docGenix product suite, firms can proactively manage risks embedded in these documents - such as ratings downgrade and Net Asset Value triggers - by performing deep portfolio analysis and stress tests. The docGenix applications also provide Web Services data feeds designed to interface with in-house applications (such as collateral and risk management systems) as well as third party systems (such as swap data repositories).
The docGenix applications and data feeds are enabled by an XML data model that represents derivatives and other financial/legal documents as computer-readable algorithms. This XML data model was developed over the past several years and represents over 27,000 man-hours of development by finance lawyers and XML architects. It contains a standardized yet flexible reference model of the universe of legal and financial terms utilized in Master Agreements, Credit Support Agreements and other financial agreements.
Since financial services firms typically warehouse large portfolios of Master Agreements, Credit Support Agreements and other financial documentation as images or PDFs, docGenix provides a fully managed service to digitize the documents at high accuracy levels and then analyze and extract critical data elements using specially trained staff and technology. Recently, Innodata had on staff over 800 attorneys performing data extraction from complex legal documentation.
"The problem with a large portfolio of legal agreements is that critical data contained within the agreements is effectively obscured," stated Jack Abuhoff, Innodata CEO. "Take, for example, a major financial institution with billions of dollars of risk in several thousand derivatives contracts - if there's a general market deterioration or if even just one of their counterparties fails or even just begins to deteriorate, the institution could lose tens of millions of dollars in the time it takes to have their lawyers read and analyse hundreds of pages of complex legal documents. With a docGenix data solution, not only can the institution react quickly with certainty - it can even be "war gaming" in advance, testing its portfolio under different scenarios. Moreover, the docGenix approach will enable institutions to future-proof against anticipated reporting requirements.
"The Financial Crisis Inquiry Commission noted in its 2011 Report1 how the existence of millions of opaque derivatives contracts governed by Master Agreements and Credit Support Agreements between systemically important financial institutions triggered a panic that resulted in the failure of prominent financial institutions and costly government-sponsored bailouts. It is therefore not surprising that the April 2011 CFTC and SEC Congressional Study2 under the Dodd-Frank Act suggested that information contained in Master Agreements and Credit Support Agreements may also be used by regulators for the analysis of systemic risk. The docGenix approach will enable institutions to future-proof against anticipated reporting requirements in addition to proactively managing their credit and legal risk."
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