LexiFi

LexiFi enables financial institutions to elevate their structured products and derivatives platform to a higher level.

Based on an innovative approach to modelling and managing financial contracts, LexiFi provides a flexible solution which is able to handle a large variety of products.

Ongoing research and development makes LexiFi a state-of-the-art solution which is at the forefront of developments in the derivatives industry.

Solutions provided by LexiFi include:

LexiFi Use Case: Intra Day Pricing

What is the current value of my structured notes and derivatives?

Diagram
  • Price third party structured notes and derivatives at any point in time
  • Have immediate valuations available whenever you need them
  • Actively monitor the exposure of a portfolio of derivatives and structured notes
  • Be aware of any exposure concentration in your portfolios

Valuation of Products

LexiFi enables financial institutions to value all genres of derivatives and structured products. This can either be via a scheduled process or as ad-hoc task whenever required during the trading day.

LexiFi Use Case: Stress Testing

What is the value of your client’s portfolio if the market drops 20%?

Diagram
  • Calculate product and / or position valuations simulating changes in market conditions
  • Define scenarios which can be reused
  • Compare stress testing results with Value at Risk numbers to compare the likelihood of such an event
  • Generate reports with the required stress testing analysis
  • Proactively react to ever changing market conditions

Definition of Scenario

LexiFi allows for the stress testing of any input factors that go into the pricing of products. Scenarios can be applied to single products or whole portfolios.

Scenarios can include changes to single items (e.g. HSBC drops by 10%) or a set of items (e.g. All stocks drops 10%, Volatility increases 20%, Issuer Credit spread widens by 150 Bps).

Reporting

Stress tests can either be run online or as scheduled reports, which can be distributed to the respective recipients.

LexiFi Use Case: Documents

Do you have a fully automated solution for the generation of term sheets?

Diagram
  • Fulfill regulatory requirements with respect to termsheets
  • Simulate potential profit / loss based on pre-defined market scenarios
  • Include additional analytics like autocall or barrier probabilities
  • Ability to dynamically generate term sheets based on different markets, containing different legal disclaimers and in multiple languages
  • Generate performance reports for existing products

Information essential for regulatory requirements

LexiFi allows for the calculation and inclusion of a wide range of analytics into term sheets. These include:

  • The profit / loss of a certain product in specific market scenarios
  • Autocall / Barrier Probabilities
  • Value at Risk
  • Concentration Risk

LexiFi Use Case: Event Monitoring

Do you want to actively monitor upcoming events of Structured Notes and Derivatives?

Diagram
  • Actively monitor upcoming events and pro-actively inform your customers
  • Automatically manage all events related to your structured notes and derivatives
  • Monitor expiries / autocalls of products and plan the issue of new products accordingly
  • Calculate the likelihood a certain event will occur

Event Management

LexiFi provides the ability to automatically detect all mandatory events and update the relevant contracts accordingly. In case of optional events, LexiFi supports the required processes and provides the required information to the respective parties.

Event Reporting

LexiFi provides reports to highlight the probability of the occurrence of certain lifecycle events. This includes potential call of callable products, the likelihood a product will be redeemed or the probability of barrier crossings.

For more information about the capabilities of LexiFi contact us at lexifi@42-consulting.com