Business problem & solution
Cleareye · Finance · 2019–2020 · Public
The problem
When an interest-rate benchmark like LIBOR is discontinued, every contract that references it has to be found, read, and — where there is no robust fallback — amended before the benchmark ceases. A large institution can hold tens of thousands of such contracts across decades of paper: digital PDFs, Word documents, and scanned images of agreements signed long before anyone planned for transition.
Reading them by hand is slow and inconsistent. The hard parts are locating the rate clause and any fallback language, deciding how confident the read is, and prioritising remediation by exposure — all while keeping a defensible audit trail.
The solution
The Transition Desk ingests a contract in any of the three formats, reads its clauses (parsing digital text directly, or running a metered vision stage that judges how legibly a scan reads), extracts the benchmark, fallback presence, dates, parties and amendment indicator, and scores how confident it is. High-confidence reads are auto-accepted; medium go to a review queue where a human overrides the AI; low go to an exception queue for manual handling.
Everything validated rolls up into an amendment register, ranked by benchmark × materiality, ready to export to a remediation workflow. This is a downscaled reimplementation on synthetic contracts — Cleareye is named as context only.