Firm News

Gordon Dadds launches Financial Markets offering with OTC derivatives management service

Solution for investment banks facing interruption of trading activity


02/06/2016

We have launched GD Financial Markets, an innovative management consultancy providing advisory, business consulting, solution integration and managed services to capital markets clients.

GD Financial Markets Founding Partners Brett Aubin, Paul Saunders and Jon Szehofner join the firm from Deloitte and will be based at our London office on Agar St.

The team’s first offering is a Derivative Documentation Managed Service. This will enable investment banks to meet requirements around updating their International Swaps and Derivatives Association (ISDA) agreements under upcoming Variation & Initial Margin rules for non-centrally cleared over-the-counter (OTC) derivatives.

Under regulations such as the European Market Infrastructure Regulation (EMIR), investment banks have until March 2017 to comply with the new rules for margin requirements. However, many are well behind in their preparations and risk regulatory scrutiny if they cannot demonstrate progress and ultimately, might have to suspend trading activity if they remain non-compliant.

To deliver this managed service, the team has partnered with managed legal services provider Cognia Law and innovative Documentation Solution provider Thunderhead. This partnership will enable ISDA document processing in London, Cardiff and Cape Town. The high document volumes and complicated negotiation protocols will be optimised and controlled through the Thunderhead product SmartDX.

Brett Aubin, Founding Partner of GD Financial Markets, comments:

“This offering represents a genuine collaboration of managed service expertise, operational excellence and market-leading technology. We anticipate high demand.

“Investment banks are looking for a solid and cost effective way to manage the increasing regulatory burden. Deadlines are approaching fast and many are facing several months of work to clear the contracts backlog. Our solution cuts that timeframe down by half when compared to traditional law model delivery frameworks.”

Adrian Biles, Managing Partner of Gordon Dadds, comments:

Gradually and deliberately, we have been creating the core capabilities which represent Gordon Dadds’ vision for the professional services provider of the future.

“The financial markets are subject to exacting compliance and banks are exploring new ways to cut the cost of meeting regulators’ ever increasing demands. We have assembled a team of undisputed sector leaders, and are now uniquely placed to assist our clients in addressing the complex and manifold challenges faced.

“The launch of GD Financial Markets is the most recent step in our development as a leading provider of professional services solutions.”

Robin Moody, Global Head of SmartDX comments:

We’re very pleased to add GD Financial Markets to the growing number of SmartDX partners who have seen how SmartDX can drive a 30% reduction in the time taken to create, negotiate and execute machine readable documentation.

“SmartDX will play a pivotal role in this mass repapering exercise, and we are pleased to welcome GD Financial Markets into our community of firms looking to lead the industry in utilizing technology to meet fast-approaching regulatory deadlines.”

Janet Taylor-Hall, CEO of Cognia Law comments

“Cognia Law is delighted to join forces with GD Financial Markets and Thunderhead to bring this smart well aggregated solution to the market. Together, we will provide investment banks with a high-calibre alternative to support the required renegotiation of tens of thousands of agreements with clients to meet tight regulatory deadlines.

“We look forward to combining Cognia Law’s proven track record of supporting investment banks’ in-house derivative teams with multilingual dual-shore managed legal services, GD Financial Markets’ extensive consulting and managed service design experience and Thunderhead’s technical excellence to help investment banks address the challenge ahead.”

The Derivative Documentation Managed Service is the first in a series of solutions from GD Financial Markets to be released over the coming months which aim to decrease the regulatory burden being placed on financial markets.

Gordon Dadds