Mitigate Legal and Documentation Risk

Document Risk Review

​​Documentation risk is inherent for all Derivatives contracts. A negligible mismatch between the Contract and the system can lead to huge financial losses. eClerx has developed a unique solution to ensure that the Trade Confirmation/Agreement is in sync with the system and that the contract is as per industry and regulatory standards. We help save clients from P&L losses arising due to inaccurate documentation.
 
eClerx implements a customizable data capture module to capture and audit data from thousands of contracts. We reconcile the audited values from the contracts to our client systems’ data.
 
We reconcile multiple types of contracts including:
 
  • Vanilla
  • Structured and
  • Complex
 
eClerx also processes other legal documents such as Master Agreements and Credit Support Annexes.

Challenges

  • ​Align legal risk in confirmations with its corresponding system risk
  • Tracking and reporting non-standard terms, handwritten amendments and other exceptions
  • Data from document digitized in a searchable database, quick re-reconciliation in case of system migrations

Solutions

  • e​Clerx developed dual data capture and reconciliation engine captures the data form contracts and compares economic parameters with the client system. The discrepancies are then escalated to the client to take further action
  • eClerx also maintains the status of all discrepancies raised and updates its records upon receiving resolutions from client
  • Metrics/MI published to identify systemic or specific counterparty issues with documentation
  • Provides filterable and searchable version of contracts in spreadsheet format for quick  reference

Benefits

  • ​Ensuring data in contracts is in sync with client systems
  • eClerx reconciliation engine can be customized as per client’s need for high rate of accuracy
  • Highlighting the risk embedded in the contract - it can be non-standard language, handwritten amendments, Reference Obligation mismatches and unexecuted contracts
  • Real time dashboards provide easy access to reports and metrics