The financial industry’s landscape has significantly transformed due to the mandated shift from IBOR (Interbank Offered Rate) to RFR (Risk-Free Rates). A Continental European Bank, facing the complex challenge of transitioning its legacy contracts referencing IBOR/LIBOR before the FCA’s sunset date, sought a reliable automated system and approached EvoluteIQ.
The Results
65%
Cost savings for the LIBOR transition program
96%
Accuracy rate of repapered IBOR contracts
10,000
Legacy IBOR contracts transitioned
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The Challenge:
Navigating the LIBOR Transition
Our client, the continental European bank, faced the daunting task of managing over 10,000 legacy contracts tied to LIBOR rates, with many extending beyond the 2021 deadline. To manually transition these contracts, a team of over 40 paralegals needed to handle the prioritization, analysis, and repapering processes while ensuring both cost-efficiency and precision.
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EIQ Solution:
Piloting IBOR to Risk-Free Rates Transition: How EvoluteIQ Enhanced Compliance
EvoluteIQ spearheaded a comprehensive automation effort targeting the classification, repapering, and execution workflows of the diverse legacy contracts. An exposure dashboard was deployed to streamline this intricate process, facilitating the analysis and prioritization of counterparties and contracts. This dashboard acted as a central control hub, orchestrating workflows across Legal, Risk and Compliance, Operations, and Business teams. These digital workflows, often referred to as “digital paralegals,” were pivotal in the execution of the complex legacy LIBOR transition process.
Additionally, our solution benefited from existing templates and system training tailored for different industry standards such as ISDA and FBF, providing extensive asset class coverage. This existing infrastructure significantly accelerated the implementation of the solution, expediting the LIBOR transition process.
To further enhance efficiency, we leveraged pre-built connectors for crucial components like Digital Signatures, Content Management Systems, and access to the global LEI database for seamless legal entity identification. These integrations seamlessly integrated essential functionalities into the LIBOR transition workflow, ensuring a robust and efficient process.
