Artificial intelligence to tackle big data challenges
29 January 2016 London
Image: Shutterstock
Artificial intelligence as the solution to managing big data has taken another leap forward with the release of RAVN ACE, which offers automated data extraction for International Swaps and Derivatives Association (ISDA) master agreements.
The new system, created by London-based tech firm RAVN Systems, uses the RAVN Applied Cognitive Engine (ACE) will assist market participants in the over-the-counter derivatives space need to better manage counterparty exposures and corresponding collateral obligations, in response to increasing regulatory requirements.
Certain ISDA contracts are being renegotiated in order to remove excessive levels of risk, causing documentation management issues for derivatives users, and stretching operations departments.
The new RAVN technology combines elements of artificial intelligence and information processing to create a platform that can read, interpret, extract and summarise information within legal documents, such as ISDA CSAs.
It then converts this unstructured data in to structured output, working more quickly and accurately than a human could.
Extracted information can include the structure of the agreement and clauses and sub-clauses, which can be helpful for renegotiation of contracts. RAVN ACE can also extract key definitions, including collateral data.
That data can then be made available for input in to contracts, collateral management systems and margining systems, or provided in Excel or XML format, for analysis.
In addition, the technology can provide an in-context review and preview of the extracted information, making it easier for firms to further validate the data in the context of the original agreement.
Once data is extracted and audited, RAVN ACE can analyse the content, identifying high credit risk relationships and scoping the size of the contract rewriting required.
The system intends to help institutions to cope with the challenges of renegotiating multiple contracts, and thereby reducing risk and remaining compliant, while allowing them to manage their time more efficiently, and keeping costs to a minimum.
The new system, created by London-based tech firm RAVN Systems, uses the RAVN Applied Cognitive Engine (ACE) will assist market participants in the over-the-counter derivatives space need to better manage counterparty exposures and corresponding collateral obligations, in response to increasing regulatory requirements.
Certain ISDA contracts are being renegotiated in order to remove excessive levels of risk, causing documentation management issues for derivatives users, and stretching operations departments.
The new RAVN technology combines elements of artificial intelligence and information processing to create a platform that can read, interpret, extract and summarise information within legal documents, such as ISDA CSAs.
It then converts this unstructured data in to structured output, working more quickly and accurately than a human could.
Extracted information can include the structure of the agreement and clauses and sub-clauses, which can be helpful for renegotiation of contracts. RAVN ACE can also extract key definitions, including collateral data.
That data can then be made available for input in to contracts, collateral management systems and margining systems, or provided in Excel or XML format, for analysis.
In addition, the technology can provide an in-context review and preview of the extracted information, making it easier for firms to further validate the data in the context of the original agreement.
Once data is extracted and audited, RAVN ACE can analyse the content, identifying high credit risk relationships and scoping the size of the contract rewriting required.
The system intends to help institutions to cope with the challenges of renegotiating multiple contracts, and thereby reducing risk and remaining compliant, while allowing them to manage their time more efficiently, and keeping costs to a minimum.
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