the industry standard for derivatives trade and

SOLUTION BRIEF

The industry standard for derivatives trade and relationship documentation

SMART DXSOLUTION BRIEF

SIMPLIFYING COMPLIANCEAcross the globe, regulators are seeking to introduce greater transparency into fi nancial markets – and OTC derivative trading is a particular target.

As a result, a slew of new regulatory rules have been added for dealers and buy-side fi rms, essentially meaning more information about trades is required sooner. The Dodd-Frank Act alone has introduced 29 rules that aff ect both pre- and post-trade documentation.

Current document negotiation processes are frustratingly lengthy and opaque. Documentation is typically shared by email, providing the sender no control or visibility of progress. Amended drafts are returned, often with no explanation for the changes. All the while, the clock is ticking – in a market where speed and control are paramount.

Smart DX automates the production and processing of every kind of trade and relationship document: MCAs, CSAs, PSAs, IMAs, term sheets, confi rmations, master agreements and physical trade documentation.

Smart DX enables accelerated execution and increased transparency, enabling you to demonstrate control and meet your obligations in an increasingly regulated trading environment.

Smart DX drives effi ciencies in the process. Instead of requiring extensive manual input, documents are created from fully compliant templates, which are then shared, reviewed and approved online. Data can be extracted as an XML stream direct to other systems such as risk, pricing and collateral. Manual input is reduced, saving time and money and reducing the risk of error.

INCREASE CONTROL AND TRANSPARENCYSmart DX off ers an alternative approach that provides total visibility and increased control. It allows all negotiations to be conducted centrally and securely online, and builds a full audit trail of those negotiations – a single version of the truth – working across multiple teams and organizations.

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Drafting, Negotiation & Execution

Document Template Library

Document Assembly & Delivery(Agreements, Confirmations & Reporting)

Relationship Trade Post-Trade

Digitize Automate

KYC

Relationship Agreements

Client Facing Documents

Client Reporting

Product Agreements

Client Marketing & Sales

Pre-Trade Affirmation

Trade Execution

Confirmations

Settlement & Reporting

Valuation

Trade Lifecycle


Smart DX facilitates the production of fully compliant documents within the timescales required. All changes made to the draft are captured automatically, creating a full audit trail of the decisions and amendments made to each document during the negotiation process. The negotiation history can be extracted as an XML stream and fed directly into other internal systems to support compliance procedures.

ACCELERATE DRAFTING AND NEGOTIATIONAll client documentation can be created from pre-approved templates that are branded and tailored to your requirements. This expedites the drafting process and enables you to meet aggressive timelines. Smart DX intelligently highlights changes and edits in a document, allowing rapid review and instant online approval.

ACCESS EXECUTED TERMSACROSS ALL CLIENT AGREEMENTS Documents produced using Smart DX use a template structure with pre-defi ned data points, this helps to facilitate the extraction of specifi c data points and terms, which is crucial for fi rms when assessing their exposure to market events.

REDUCE DOCUMENTATION COSTSSmart DX can signifi cantly reduce the costs of document processing by increasing automation and reducing – or even eliminating – the need for staff to manually update drafts, to email or fax documents to counterparties, and to re-key data into diff erent systems and formats.

CENTRALLY MANAGE ALL CLIENT DOCUMENTATIONSmart DX allows the entire document lifecycle to be managed on a single system – securely and quickly. The Smart DX Dashboard and Task Manager provides a central interface to monitor the status of your client requests.

ACCELERATE THE APPROVAL PROCESSESSmart DX provides an e-Signature solution to facilitate complex signature and approval workfl ow requirements (such as four-eyes checking, multi-signatories, approver cannot be signatory, etc) whilst providing auditing and visibility into the entire approval process.

INTEGRATION WITH INDUSTRY UTILITIESThe integration of Smart DX with industry utilities provides an on-demand document negotiation service for trade and relationship documents that signifi cantly increases effi ciencies and enables users to meet the demands of a rapidly evolving regulatory landscape.

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MasterConfirmationAgreements

ISDAMaster

Agreements

CreditSupportAnnexes

TradeConfirmations

Smart DX accelerates thetrade documentation process

for all product lines

About Smart CommunicationsTM

Businesses around the world engage with their customers and each other everyday. As communications and interactions with customers and partners become more complex, businesses now recognise that communications increasingly take place in an interactive and real-time context and are critical to success. The Smart Communications suite of solutions helps businesses to move beyond traditional enterprise communications using the most modern architecture and cloud capabilities.

Today, hundreds of brands globally from a diverse range of demanding industry segments including banking, insurance, government, retail and telecoms are using Smart Communications to deliver the new generation of customer and business communications.

A division of Thunderhead, Smart Communications is headquartered in London and serves its customers from offices located in North America, Europe and Asia Pacific.

Copyright © Thunderhead 2016 All rights reserved. Version 2.0 (US). Thunderhead endeavors to ensure that the information within this document is correct and fairly stated, but does not accept any liability for any errors or omissions.


Timeline of Key Decisions and Events Around Negotiation of an MCA within a Smart DX Docbox

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