Deloitte recently announced an alliance with Recommind, an information intelligence provider, to deliver a managed service to investment banks, transforming the way over-the-counter International Swaps and Derivatives Association (ISDA) agreements are managed.

The new offering will consist of a Deloitte service wrapping around Recommind’s Perceptiv Derivatives Contract Analysis, a sophisticated machine learning technology, in the firm’s managed service layer to ensure optimal service delivery. The SaaS platform handles the process of sifting through thousands of counterparty agreements to identify the data traders need to drive profits, including eligible collateral, interest rates, termination events, netting, thresholds and independent amounts.

“Under Dodd-Frank, EMIR, and Basel III, investment banks are required to have a much more granular view of their data, and this requires a change in the way information is managed within large financial institutions,” said Katelyn Brown, a partner of Deloitte MCS Limited. “OTC derivatives contracts, in particular, are made up of hundreds of data points."

"Errors that creep in during manual processes lead not only to regulatory headaches, but also substantial financial losses," Brown added. "Working with Recommind will allow us to improve the way our customers’ OTC Derivatives Contracts are managed, speeding up the process and eliminating human error to optimise profit and mitigate risk.”