Setting up OTC derivatives documentation units

Planning and setting up OTC derivatives documentation units

Setting up derivatives documentation units is easier said than done and requires a great deal of planning to achieve the best results.

This client requirement normally arises in two ways i.e. establishing a completely new unit or reshaping an existing one.

Setting up a new unit

This type of work is done for clients new to the market. Here it is important to establish the types of agreements to be covered by the unit; the timescale for establishing it; the identity of the client contact for reporting and problem solving purposes and their recruitment requirements e.g. the level of experience required from potential employees. This can include the interviewing of suitable candidates when DDL would test their technical knowledge of the documents concerned if required.

Such projects usually also involve establishing systems for negotiation tracking and a database covering the key constituents of completed agreements so that event triggers are clearly flagged across all agreements.

Reshaping an existing unit

This normally arises where existing management is unhappy about the efficiency of a unit which it wishes to improve or where new management is being brought in to run it. All the issues raised in setting up a new unit arise in this type of project too but here DDL may be requested to focus on specific areas only.