As the sunset of LIBOR gets nearer, financial institutions should be gearing up to lessen the impact on their banking books, trading books as well as their clients' portfolios. Given the widespread impact on the entire financial services diaspora covering banking, capital markets, insurance and corporate treasury, the clock has already started ticking for enterprises to be on their way to transition to an alternative Risk Free Rate (RFR) world.
The nature of business being complex and risky, firms need to look at managing the risk of migration by adopting strategy with a combination of right domain expertise, superior tools & technologies and a partner with an extensive experience in financial services consulting & implementation.
- Fast approaching deadline: Regulators have already given the go-ahead to move towards an alternate rate
- Managing co-existence: Added complexity of managing LIBOR as well as risk free rate during the transition period
- RFR determination and application: Tools to compute and disseminate new rates across downstream systems
- Impact assessment: Identifying contractual as well as impact to product processors
- Disparate data exchange: Differing formats and protocols across interface layers
We understand that LIBOR transition is a cross functional initiative for financial institutions. In consultation with ex-bankers, risk managers, tech specialists, regulators and partners, Intellect brings to you a comprehensive set of services for LIBOR transition. Intellect LIBOR Transition facilitates fast and secure means of migrating to RFRs, through the four pillars of:
- RFR CalcService: RFR calculator for rate transformation and dissemination to relevant product processors
- Analysis to determine application as well as contractual impact and assisting in making necessary changes to the core product processors
- AI assisted identification of impacted documents and contracts
- Low coding interface framework to manage data exchange needs with enterprise data marts and core products, seamlessly