Numerix unveils Oneview for the LIBOR Transition

Source: IBS Intelligence 2020-07-09

Numerix, a leading provider of innovative capital markets technology solutions and real-time intelligence capabilities for trading and risk management has announced that the company has partnered with NextGen Strategic Advisors, a Financial Institutions management consulting firm, to introduce Numerix Oneview for the LIBOR Transition.

The solution aims to address the complicated legal, operational, technological and risk challenges presented by the phase-out of LIBOR. It leverages Artificial Intelligence (AI) technology, for identifying, revising and extracting specific legal and transaction terms in loans, floating rate notes, structured transactions, and derivative contracts to:

Support contract language negotiations,Provide critical information to support operations and transaction management,Provide custom data feeds to update downstream processing and valuation systems,Provide risk management and scenario analyses.

“The alternative reference rate (ARR) debate today is centered around the timing of the transition, the specifics of the ARRs, term structures and basis spreads, and the lack of liquidity in new ARR products. However, the biggest and most expensive challenges of managing this transition include renegotiating millions of contracts that reference LIBOR, operationalizing the updated terms for legacy and renegotiated contracts, and managing the financial, credit and operational risks of the transition. By utilizing the AI technologies of machine learning and natural language processing, we have designed a capability that will help institutions radically address this transformational change efficiently and cost-effectively,” said Gary Mandelblatt, Managing Partner of NextGen Strategic Advisors.

By digitalising contract information to automate the updating of systems with new rates and terms, Oneview for the LIBOR Transition expects to help legal and operations departments to reduce the burden, resource requirements, and time needed to drive their LIBOR transition projects. The contract information can also be fed into Numerix’s valuation models to calculate LIBOR exposures and risks under different scenarios utilising a range of benchmark assumptions.

“Numerix has been on the forefront of helping market participants prepare for the LIBOR transition. Our cutting edge multi-curve framework is helping firms navigate the shift to alternative reference rates, and we were first to market with complete coverage for SOFR and SONIA curves. Over the past twelve months, our clients have been leveraging our technology to assess the impact of the LIBOR transition, making the necessary adjustments within their pricing and risk systems to accommodate new curves. This revolutionary new solution addresses a unique and massive challenge and will help to streamline the legal and operational complexity of the LIBOR transition while mitigating P&L and risk exposures,” said Steven R. O’Hanlon, CEO and President of Numerix.

Established since 1996, Numerix is designed for the next evolution of trading and risk operations for both sell-side and buy-side market participants. Its clients include many forms by banks, government/development banks, broker-dealers as well as a range of buy-side institutions, including insurance firms, hedge funds, pension funds and asset managers.

Numerix

NextGen Strategic Advisors

Numerix Oneview

Numerix unveils Oneview for the LIBOR Transition

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