Use Case: Helping Bank C comply with lending requirements
Bank C is based in the EU and is subject to the Capital Requirements Regulation. Article 194(4) of the Capital Requirements Regulation (Regulation (EU) No 575/2013) states that a “lending institution” may recognise funded credit protection (such as the ‘collateral’ received under a repurchase transaction) as a credit risk mitigant only where it has the […]
Use Case: Helping Bank A comply with US Regulations
Bank A is a US Bank. 12 CFR Part 3 states that Bank A can only calculate exposure on a net basis if derivatives transactions are governed by a “qualifying master netting agreement”. If not, exposures must be calculated gross – significantly increasing capital usage. 12 CFR 3.3(d) states that “In order to recognize an […]
Use Case: Helping Asset Manager Z streamline EMIR Compliance
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 […]
Use Case: Giving Bank F’s bespoke legal opinions a home
As a major European bank, Bank F is subject to Article 296 of the Capital Requirements Regulation (Regulation (EU) No 575/2013). This states that, in order to be able to mark OTC derivatives counterparty credit lines as ‘net’, Bank F must make written and reasoned legal opinions available to regulators which support the enforceability of […]
Use Case: Helping Bank G with audit point compliance
Bank G is a major European Bank. It is subject to Article 296 of the Capital Requirements Regulation (Regulation (EU) No 575/2013). This states that, in order to be able to mark OTC derivatives counterparty credit lines as ‘net’, Bank G must make written and reasoned legal opinions available to regulators which support the enforceability […]
Use Case: Helping Hedge Fund Y comply with Initial Margin Rules
Hedge Fund Y, based in Europe, is subject to EMIR. Article 19 of Commission Delegated Regulation (EU) 2016/2251 stipulates that “Counterparties” (a definition which includes Hedge Fund Y) which exchange initial margin must perform an “independent legal review” verifying the robustness of collateral segregation arrangements. The legal review itself may be conducted by an independent […]
Use Case: Helping Bank X achieve CRR compliance
Bank X, based in Europe, is required to comply with Article 296 of the Capital Requirements Regulation (Regulation (EU) No 575/2013). Article 296 states that, in order to be able to mark OTC derivatives counterparty credit lines as ‘net’ (reducing balance sheet usage), sell-side firms must make written and reasoned legal opinions available to regulators […]
Use Case: Helping Firm D’s legal function increase efficiency
Hamstrung by a headcount freeze, Firm D’s legal department identifies document data extraction and close-out netting determinations as two key areas in which AI might enable it to do more with less. Ark 51 ticks all of Firm D’s requirements in this area: From an ROI perspective, the benefits associated with Ark 51 dwarf the […]
The great LLM hallucination fallacy
The great LLM hallucination fallacy Ark 51 is an AI-powered document repository. It is designed to give you insight, hindsight and foresight into the contents of your document portfolio. It will extract data with significantly greater levels of accuracy than any human – in a fraction of the time – reducing the cost of achieving […]
Double O AI: Agentic AI, its advantages and pitfalls
Artificial intelligence (AI) exploded onto the scene in its most recent form with the birth of ChatGPT from OpenAI at the end of 2022. Three years later and there are a lot of Large Language Models (LLMs) in the market that are brilliant at responding to texts and images. This article focuses on the former, […]