Delta Capita has adopted the technology of Luminance, an artificial intelligence platform for accounting firms, assist them with its London Inter-bank Offered Rate (LIBOR), Inter-bank Offered Rate (IBOR) and the Euro Interbank Offered Rate (EURIBOR) transition projects.
LIBOR, which is estimated to be embedded in up to $340 trillion worth of financial contracts worldwide, is the most widely used benchmark for short-term interest rates.
Delta Capital says it is using Luminance’s machine learning technology to better understand risk exposure across their contracts and thus mitigate the impact of the transition.
The financial services firm will be able to instantly reveal critical LIBOR-related provisions such as LIBOR definition, interest rate definition, LIBOR fallback and change in law. Luminance is then able to learn from the interaction of the reviewer to generate additional insight.
Luminance says its unique synchronisation with Microsoft Word ensures that reviewers can then easily apply this insight in order to amend and remediate contracts, all from within the Luminance platform.
It claims to be the only platform on the market that uses supervised and unsupervised machine learning to read and form an understanding of legal data.
Ben Pugh, head of business development at Delta Capita’s structured products business, said: “The effort and cost of reviewing financial contracts using manual methods is unfeasible for many of our clients with less than a year to go before transitions should be complete.
“Using Luminance’s revolutionary technology, we can help clients ensure a seamless transition away from the LIBOR, IBOR and EURIBOR benchmarks. Luminance’s game-changing technology provides real value out-of-the-box, exposing LIBOR-related risk across often vast data sets and can be used for assurance to check complete capture of all clauses as equally as it can for initial discovery.”
Clementine Fox, Luminance’s head of account management, added: “The transition away from interbank offered rates such as LIBOR, IBOR and EURIBOR is an example of a problem that is best tackled with AI.
“Using Luminance, Delta Capita will drastically reduce the time of locating, understanding and remediating the volume of LIBOR, IBOR and EURIBOR-related documents from a few months to a matter of days, and at the same time will be instilled with the greatest confidence that nothing has been missed in their review.”
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