Global transition away from interbank offered rates (IBOR) is now a certainty. With a wide-ranging effect across subsidiaries, branches, countries as well as processes, functions and IT, firms are acting to understand financial exposures, risks and operational impacts.

The transitioning to the new RFRs involves the renegotiation, management and coordination of high volumes of contracts and IBOR reference materials.

With such a complex programme of activities, firms need a solution that brings data, With such a complex programme of activities, firms need a solution that brings data, automation, and artificial intelligence all in a single solution. And that’s Xceptor.

Configuration, from rules to AI, is simple and done by end users. And that means there is no need for data scientists or heavy reliance on IT.

Xceptor for IBOR Transition

Digitisation

Legacy IBOR documentation and correspondence typically sits within emails and PDF emailattachments. Using a blend of rules-based processing and artificial intelligence, Xceptor is easily able to digitise existing contracts and documentation ready for interrogationdocumentation ready for interrogation

Data transformation

The flexiblity of Xceptor means it can extract and enrich both structured (e.g. reference data, risk data, valuation data and trade data) and unstructured data (e.g. term sheets, confirmations, master agreements, emails). Validation is against both internal and external Validation is against both internal and external sources

Data exceptions

With data exceptions typically the root cause of low automation, Xceptor’s exception management capabilities are simple to configure. The solution learns through corrections made by users, meaning teams handle less exceptions users, meaning teams handle less exceptions over time

Data analytics

Xceptor can identify IBOR references and clauses in documentation as well as aggregate, filter and validate IBOR product financial data. This enables Xceptor to perform calculations to understand direct and indirect exposure across products, direct and indirect exposure across products, currencies, clients and geographies

Identify - Quantify

Plan - Mitigate

Negotiation workflow

Processing of client and legal responses and version history across multiple channels is easy with Xceptor. Users can create workflows of documentation through the various stages of online and offline re-negotiation processonline and offline re-negotiation process

Negotiation audit

Client negotiation for contract amendment or replacement is a tricky part of IBOR transition. Xceptor can provide full audit traceability of the repapering process and documentation including actions performed, version history and counterparty correspondencecounterparty correspondence

Management reporting

Xceptor’s MI capabilities can provide an ongoing view of efforts to reduce exposure and users are able to define their own report views. Additionally, data can be exported to external sources and systems

Document generationDocument generation

Xceptor can issue new documentation in multiple formats referencing appropriate fallback language, new RFRs and terms of agreement