By Robin Moody, Global Head of SmartDX
Today, nearly every process is digitized. Everything is about data. Except in capital markets documentation.
Trade and relationship documentation is still negotiated via non-transparent and non-collaborative legacy processes. Capital Market participants must begin to embrace the move to data-driven documents. It’s time to move to a collaborative environment in order to improve the document negotiation process that prioritizes data. Cloud-based, collaborative document negotiation can help bring the capital markets into the digital age.
Data accessibility is vital, so the capital markets must continue to move to machine-readable documents where they can access data instantly and understand their positions at the press of a button. As the industry introduces new regulatory requirements to reduce systematic risk, the ability to access data within documents and ingest it into downstream operational systems is critical.
While digitization in capital markets documentation is slow, there are signs of progress that indicate a readiness to explore collaborative negotiation in a digital environment. Cloud-based collaborative environments must provide the ability to negotiate documents digitally, between multiple institutions, using simple-to-use tools. In addition to offering ultimate security, it must allow access to existing industry applications and be able to integrate with new ones. This brings control and visibility to document management and removes bottlenecks, giving access to a highly secure, centrally available, single version of the truth in data.
Cloud-based collaborative negotiation also brings speed, efficiency and economies of scale. Now is the time for the capital markets to close the document management loop and negotiate all documents within a digital environment with the data they contain readily accessible to those who need it. Making cloud-based collaborative negotiation central to capital markets operations will bring increased transparency, efficiency, and control to trade and relationship documentation.