Markit, the leading provider of independent data, portfolio valuations and OTC derivatives trade processing, today announced it has launched Markit Document Exchange, a documentation library that allows financial institutions to post, manage and share compliance, counterparty credit and regulatory documents securely.
The new service allows buy-side and sell-side institutions to comply with regulatory requirements and industry best practice relating to compliance, credit and regulatory documentation. By automating Know Your Client (KYC), Anti-Money Laundering (AML) and Compliance Certification processes, Markit Document Exchange will reduce the risks associated with these documentation requirements and bring operational efficiency and cost savings to the process.
Penny Davenport, managing director and Head of Markit Document Exchange said: "Quick access to counterparty information is crucial from a regulatory and compliance standpoint as well as a business point of view. Markit Document Exchange simplifies the information management process for both the sell-side and the buy-side. We are pleased to provide an industry solution that will bring efficiency and cost savings to all types of market participants."
Edward Budd, director at Deutsche Bank said: "’We view Markit Document Exchange as a strategic vehicle that will significantly increase overall market efficiency in the exchange of regulatory, credit and compliance related documentation. This should have tangible benefits for both buy and sell-side participants.’"
Gretchen Markel, executive director at JPMorgan said: "Markit Document Exchange is being placed at the heart of our onboarding processes and we expect it to have a major positive impact on the customer experience we provide to our clients."
Tracey Jordal, senior vice president at PIMCO said: "Markit Document Exchange provides a simple method of sharing documentation with our counterparties. Integrating Document Exchange into our daily workflow has streamlined our processes and controls, allowing us to focus on our core business."
Markit Document Exchange launches with the support of five global investment banks and two leading buy-side institutions: Bank of America, Citi, Deutsche Bank, JPMorgan, the combined ABN AMRO / RBS, Eton Park Capital Management and PIMCO.
Currently, the process of gathering documentation for regulatory, credit and compliance purposes is labour-intensive. Institutional investors need to provide numerous documents to each bank counterparty. In addition, once the documents have been delivered, they need to be periodically re-certified to ensure they are up-to-date. Sell-side institutions duplicate efforts when gathering information and documentation relating to institutional investor counterparties.
Markit Document Exchange streamlines the process across the entire industry. The new platform will act as a central repository for buy-side documents, reducing the need to provide and update documentation, and thus the potential for error. Markit Document Exchange will also provide the sell-side with a single source of up-to-date documentation, allowing for quick access to accurate counterparty information.