Allen & Overy has joined forces with Deloitte to launch a new digital derivatives compliance system called MarginMatrix, one of the rare instances of tie-ups between a large global law firm and a Big Four accounting outfit.

The system is expected to help major banks deal with new regulatory requirements that will come into force from September this year. It will be deployed as an end-to-end managed service, with Deloitte managing and resourcing the client outreach and counterparty negotiation process.

MarginMatrix codifies the laws in various jurisdictions and automates the drafting of tailored documents based on an automated legal analysis. It aims to provide a controlled workflow environment for contract negotiations, save cost and maximise institutions’ ability to achieve regulatory compliance.