SmartDX, the Capital Markets division of Smart Communications and services provider for trade and relationship documentation across the financial services industry has teamed up with IHS Markit (Nasdaq: INFO), to implement a newly automated functionality of ISDA 2016 Variation Margin CSAs, per a SmartDX statement.
IHS Markit is a provider of comprehensive information, analytics, and solutions for the multiple industries and markets globally. Its partnership with SmartDX will emphasize expanded capabilities of ISDA 2016 Variation Margin, and more specifically its Credit Support Annex (CSA). The new partnership with SmartDX and ISDA for ISDA Amend, Counterparty Manager serves also will constitute an end-to-end service with the goal of digitizing, reconciling, amending, and negotiating documentation.
The collaboration will see the integration of several of SmartDX’s offerings into IHS Markit’s Counterparty Manager, which will help facilitate and automate the production, exchange, negotiation and execution of the new ISDA 2016 Variation Margin CSAs, ISDA Master Agreements and Master Confirmation Agreements, as well as other document types.
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Per the new joint service offering, SmartDX will offer a machine readable and controllable copy of the document that draws on a fortified data record. This will also include a complete audit trail of how a given document was composed, negotiated and executed. Underlying data can then be consumed and actioned via an API to downstream systems.
IHS Markit’s Counterparty Manager presently serves as a secure document repository that comprises IHS Markit’s core regulatory framework – this is in turn composed of kyc.com, tax, credit and legal entity data. Currently the utility is utilized by upwards of 80 banks, 900 buyside firms and 6,000 corporations.
According to Guy Harrison, Managing Director, Regulatory and Compliance Services at IHS Markit, in a recent statement on the partnership: “New regulatory requirements for non-cleared margin, coupled with shifting deadlines across multiple jurisdictions are posing one of the biggest challenges across the financial services industry.”
“Through our partnership with SmartDX we are automating how CSAs are created, negotiated and managed. This is a crucial element which solves the problem of extracting data from documentation and also meets the needs of bilateral negotiations that cannot be processed via the ISDA Amend Protocol.”
“Our valued partnership with IHS Markit has led us to build a service that will help the Capital Markets community to reduce risk and streamline the documentation process. By adding the ISDA 2016 Variation Margin CSA base templates to our SmartDX solution, we have made it simple for the community to consume the service by conducting a simple configuration to make them specific to their organization. Digital documentation processing is no longer a technology of the future, it is ready to use today,” explained Robin Moody, Global Head of SmartDX, in an accompanying statement.