Qualified Financial Contracts (QFCs) are specific types of contracts and related agreements used by large capital markets organizations to structure transactions. They generally contain information on positions, counterparties, contractual data such as governing law and guarantees, etc., and detailed information on collateral.
In January of 2015, the US Secretary of the Treasury implemented a new approach to QFC reporting that requires organizations to report on key information held in QFCs within a 24-hour period, so the FDIC could make rapid contractual decisions on behalf of the bank in the unlikely event of financial crisis.
For organizations to be able to meet the QFC requirements, an automated system to discover QFCs across the network, extract the specific data required, and then provide the ability to design and structure QFCs reports is the only way to meet the 24-hour requirements. Trying to do this manually would be expensive, time consuming and very disruptive to the business.
Seal Software is helping banks with their QFC reporting requirements. Seal finds QFCs, converts them to searchable format, extracts relevant data, and prepares the needed reports - in real-time. Not only does it reduce time and cost, but is the only practical way to have accurate QFC reports, from across the business - on a daily basis.
For more information, please download the datasheet called “QFC: The Clock is Ticking.”