Asset Manager Z, a European firm, is subject to EMIR. Article 2 of Commission Delegated Regulation (EU) 2016/2251 requires “Counterparties” (a definition which includes Asset Manager Z’s funds) to perform an independent legal review of the enforceability of its netting and collateral agreements AND to establish “policies to assess on a continuous basis” the enforceability of those agreements.
Asset Manager Z lacks both the resources and the skill sets to review netting and collateral opinions internally. Unfortunately, traditional providers of netting and collateral data are both too expensive and lack the end-to-end functionality which Asset Manager Z requires.
In contrast, Ark 51 ticks all of Asset Manager Z’s boxes.
Through Ark 51’s opinions module, Asset Manager Z has access to all of the netting and collateral data it requires, in a user-friendly format. Moreover, using Ark 51’s AI-powered document repository, Asset Manager Z is able, in minutes, to extract from its executed documentation all of the data it requires in order to assess the enforceability of close-out netting and collateral structures. Ark 51’s netting engine then combines those two streams of data to generate actual, real-time netting determinations.
Within Asset Manager Z, a once burdensome, manual, time-consuming and error-prone process has been replaced by robust, auditable, automated and dynamic netting and collateralisation determinations. This aspect of EMIR compliance has been entirely automated and subsumed into ‘business as usual’ processes. In enhancing regulatory compliance and releasing valuable internal resource to focus on other, high-value risk items, Asset Manager Z’s investment in Ark 51 has paid for itself many times over.