Financial services continue to undergo a transformation due to de-risking, complex products, low margins, innovation from fintech startups, lack of inclusion, and regulatory challenges. The purpose of the Accord Finance and Insurance Working Group is to produce standards and open source tools to improve the ability of financial services industry to face its challenges. Essential to this goal is to enhance the ability of a wide variety of investment, trading, and other financial contracts to dynamically reflect their surrounding conditions and risk-return profiles.
Financial services and-specific contracting problems to be addressed by the Working Group include:
real-time incorporation of market data into financial contracts;
dynamic pricing and collateralization;
incorporation of data about conditions required to trigger payments, release funds, or restructure ownership;
decentralized clearing and settlement infrastructure for securities and derivatives;
investment fund governance, reporting, and asset custody;
structure and regulation of distributed token-based sales (aka “initial coin offerings”);
regulatory capital relief transactions;
automating and standardizing trade finance transactions;
integration of financing with the purchase of goods and services;
incorporation of data into insurance policies for claims, adjustments, and processing;
capturing contracts in shared financial data and processing repositories;
standardized terms and data and transaction structures for tokenized assets;
incorporation of smart legal contracts into existing compliance frameworks and technology.
CHAIR David Alderstein, Wachtell Lipton Rosen & Katz