Interactive Brokers chooses LPA Group solution for regulatory documentation

RegTech solutions provider to capital markets companies and brokers LPA Group has announced that it has been selected by Interactive Brokers (NASDAQ:IBKR) to provide a solution for regulatory documentation for its entire range of financial instruments. This includes stocks, bonds, options, and futures in over 135 markets, 33 countries and 23 currencies.

LPA’s solution is its Capmatix Doc and Data Cockpit service: a tailor-made solution which will be able to support Interactive Brokers with an automatic and state-of-the-art solution for providing all the necessary financial product documentation on a daily basis, guaranteeing both regulatory compliance and transparency for its customers.

Ongoing access and provision of the correct documentation in line with regulatory obligations presents a key challenge to international financial companies like Interactive Brokers. The scale of the operation – sometimes ensuring the availability to investors of many million documents in multiple language and variations – coupled with the differing obligations of regulatory regimes such as UCITS, PRIIPs and MiFID often becomes a significant burden for impacted businesses.

The Capmatix Doc and Data Cockpit is used by both manufacturers and distributors on the buyside and sellside and acts as a guard for MiFID II and PRIIPs regulations, protecting from disclosure mistakes for financial products through a maintained repository of latest data and documents.

Cloud-based and automated, the product will analyze Interactive Broker’s product range each day, looking at availability, languages and jurisdictions/domiciles of the relevant documents, linking to the correct source and guaranteeing the right level of coverage for that product. The Capmatix Doc and Data Cockpit will be optimally tailored to the firm’s range of products, recognizing exactly what is required for the current product portfolio in the shortest possible time.

The LPA service will additionally perform ongoing validations of data as part of PRIIPs KIDs requirements, and automatically spot and issue warnings to users regarding non-compliant product information. This level of analysis provided will also facilitate greater sales efforts for each product through accurate documentation.

Based on state-of-the-art technologies such as deep-learning, pattern recognition and the analysis of product data from all sources, the software is continually optimized and can cover a constantly changing and growing portfolio of instruments.

Yochai Korn, Managing Director of Global Financial Information Services & Global Head of Market Data and Research at Interactive Brokers commented:

“We are very pleased to be working with the LPA Group. By using the Capmatix Doc and Data Cockpit we now ensure that our customers are provided with the necessary documentation for our entire portfolio – on time, up-to-date and around the clock. With this awareness of document availability, we can actively control our product offering for each of our distribution countries in Europe. This gives us the opportunity to expand our product range and ensure compliance at all times within the framework of product governance.”

Eran Elad, Product Manager, LPA Group added:

“Our goal is to always help our customers achieve full compliance and increased efficiency, and we are delighted to work with Interactive Brokers and support their needs in this way. We hope that our collaboration helps the company meet its high-quality standards for customers and regulatory compliance through a modern and forward-thinking approach to technology usage.”

LPA is one of the world’s leading developers and consultants for technology-based capital market solutions (CapTech) for banks, insurance companies and fund providers. The core business of the multi-award-winning group is Capmatix, a software framework to automate workflows and documentation for financial instruments, structured products and OTC derivatives. LPA helps financial services companies in their capital market activities with; digital transformation, lowering the fixed cost base and automating their necessary advisory and regulatory documentation processes, thereby increasing efficiency, competitiveness and maintaining full compliance. In addition to Capmatix, other solutions include; Modelity (document generation and pricing calculations), acarda (regulatory reporting), Captano (FX, FI and MM Trading Platform) plus full consulting support and other AI driven solutions.  LPA global coverage is managed from its headquarters in Frankfurt and at twelve other international locations including Tel Aviv, London, Zürich, New York, Paris, Barcelona, Luxembourg and Singapore, over 400 technology and capital market experts are employed by LPA supporting a portfolio of international clients.