Regulatory requirements require the
digitalization of business processes


Just a decade ago, the automation and optimization of business processes in the financial industry was often seen more as a wish than a necessity. This attitude has fundamentally changed in recent years. Companies that do not digitally align their entire business model, will endanger their competitive market position in the medium term.


Structured securities as a blueprint for digitalization

This is particularly clear with structured securities, also called structured products, certificates and warrants, in Germany: Issuers who are not in a position to bring several thousand new securities to the market every day have little chance of generating sustainable turnover on the stock exchanges. These issue series were made possible by a completely digitalized value chain from the product idea to stock exchange trading. In the meantime, products can be traded on a stock exchange shortly after the conditions have been fixed.


IT solutions for structured securities and more

factor-i GmbH Zertifikatefabrik has been active in this market since 2012. Benefit from our many years of experience to accelerate the digitalization of your business processes.

Your benefits from digitalization


Prepare for the future with the automation and optimization of processes:

  • Competitiveness:
    Only with digitalized processes can your company meet today’s client expectations for fast and transparent offers.
  • Quality standard:
    The digitalized processing of a business process ensures that defined quality standards are consistently implemented and adhered to.
  • Efficiency and flexibility:
    With the help of modular and external software, business processes can be digitalized irrespectively of the current volume. Adjustments to these processes can be carried out quickly.
  • Cost reduction:
    Digitalized processes and the use of external IT solutions generally only create low costs per business transaction and thus reduce the cost base.

Digitalization of business processes


We support our customers from the financial industry in the automation and optimization of business processes. One focus of factor-i GmbH Zertifikatefabrik is on certificates and other structured securities or structured products. However, we also support you in the digitalization of all business processes.


These include, among other things

  • Issuing and settlement of securities
  • Issuing and settlement of promissory note loans
  • Confirmation and settlement of OTC transactions
  • Contract and document management


Three steps to digitalization

The first step is the preparation of the respective documents. The templates are designed so that they can be automatically filled with the data from the business processes. When documents are forwarded to third parties, the special requirements of the recipients often have to be taken into account.

In a second step, the sources from which the data originate are identified. This can be internal data from the respective company, but also external data from third parties.

In a third step, the final documents are automatically created within the framework of the respective IT solution and automatically forwarded to third parties. These can be emails with specific content or uploads to a defined platform in compliance with specific time requirements.


An example: The digitalization of an issue of structured securities

When issuing certificates and structured securities or structured products, factor-i GmbH Zertifikatefabrik achieves digitalization through the following measures:


Step 1

  • Preparation of the securities prospectus or base prospectus and the final terms
  • Preparation of documents according to BaFin (MVP-Portal), the stock exchanges (derivate XXL), Clearstream (EDT-Portal), the WM Datenservice and the German company register

Step 2

  • Linking of internal data sources with the respective documents
  • Determining the scope of data required for an issue
  • Provision of security identification numbers (WKN) or ISIN codes by WM Datenservice to identify a new issue in stock exchange, banking and settlement systems
  • Coordination of time requirements with regard to the start of public offering, stock exchange trading and settlement


Step 3

  • Execution of a new issue by linking the internal data for the issue with the documents and ensuring the dispatch of the respective documents
  • Preparation and filing of the final terms of a base prospectus via the MVP portal with the Federal Financial Supervisory Authority (BaFin)
  • Generating and transmitting of applications for stock exchange trading on the stock exchanges (via derivateXXL or by email)
  • Generating the Electronic Documentation Transfer (EDT-Portal) for settlement of new issues to Clearstream
  • Creation of a notification which is then uploaded via an interface to the German company register
  • Information about new issues to WM Datenservice (via interface or email)
  • Transmission of reports according to MiFID II and PRIIPs regulation to WM Datenservice, e.g. risk indicator, target market definition, ex ante and ex post cost transparency
  • Information to data vendors to record the new securities in the financial information systems.

Your Experts for Processes, Law & IT


We pool our experience of lawyers and IT experts to provide a single point of contact for meeting the legal and technical challenges posed by today’s business processes.

We have been practicing LegalTech and RegTech since the early 2000s, even though these terms were only used later.


Familiar with the provisions of national and European regulations

As a first step, we define together with you the client, how the respective – new or existing – regulations will affect your company, which processes have to be executed and how they can ultimately be efficiently implemented. Our experts are familiar with the regulations of European and national laws and regulations for the financial industry, such as MiFID, the Prospectus Directive or the PRIIPS Regulation, and track their creation, implementation and subsequent application. We maintain close ties with financial industry associations and working groups in order to exchange ideas on the key issues. As a result, we are in a strong position to also give you recommendations on the legal content of documents and reports.


Familiar with IT solutions for automating specifications

Our employees are also involved in automating these legal and regulatory requirements. In addition, our lawyers have a comprehensive understanding of the applicable regulatory requirements from the perspective of IT solutions and can formulate these requirements in such a way that they can be digitalized efficiently. At the same time our IT experts have a comprehensive understanding of the current opportunities for digitalization, understand the rules and regulations and thus can pave the way for a flexible and timely implementation of regulatory requirements.

Software for the financial industry


factor-i GmbH Zertifikatefabrik is a partner of EffCom AG, whose software adapts efficiently and flexibly to the individual requirements and needs of the financial industry due to its modular structure.


More than 30 years of experience in the digitalization of processes

EffCom AG began automating and optimizing business processes in the financial industry back in the mid-1980s. They started with the administration and deposit of definitive securities (so-called “Tafelpapiere”) and have continuously met the requirements of modern technologies. Today, for example, EffCom deals with the implementation of Blockchain Technology into its software solutions. In addition, the company has set milestones along the way such as the ActionContainer workflow tool, which enables the user to automate rule-based processes and to store flexible and configurable workflows in the EffCom software.

From 2012 EffCom AG was involved in the introduction of derivateXXL, the open interface standard for electronic applications for exchange trading of structured securities on the Frankfurt and Stuttgart stock exchanges.

Furthermore, with the addition of the Textation product in 2015, EffCom AG now also offers a word processing solution for the requirements of industry 4.0. Textation’s objective is the workflow-controlled creation of legal documents, such as base prospectuses or securities prospectuses, basic information sheets (BIB) or key investor documents (KID), confirmations for OTC transactions and contracts. The corresponding processes can be designed fully or semi-automatically.

Business Process Outsourcing


We develop the digitalization of your business processes, which operate independently of your existing systems, but are linked to your systems and the portals of external third parties through intelligent interfaces. This allows you to concentrate on the subject matter of the automation and optimization of securities solutions or document management without the need to adapt your existing system environment.


The decisive advantages of outsourcing:

  • Modularity:
    You choose the requirements you wish to digitalize. These can be related to regulatory requirements, but also to all other business processes. They can be multi-stage process steps as well as individual documents and notifications.
  • Focusing on the core business:
    By outsourcing business processes, which are indeed necessary, but with which you cannot differentiate yourself from the competition, you create space to concentrate on your core business.
  • External third parties:
    We prepare and forward documents and information to external bodies such as BaFin, stock exchanges, settlement agencies and your clients in accordance with the respective requirements. Often only small-scale IT solutions or configurations are necessary, as we already have numerous interfaces to external third parties.
  • Legal framework:
    We meet the regulatory and technical requirements of the supervisory authorities, e.g. BaFin, for outsourcing in the financial industry. We also provide certified secure data storage – our servers run in a data centre whose provider is bank-certified.
  • Further development:
    The definitions for interfaces to external third parties change regularly. However, you and your IT team needn’t worry about that. We coordinate and implement the corresponding adjustments so that the workload on your side is kept to a minimum.
  • Flexibility:
    Thanks to the modular structure of our solutions, the range of services you use can be adapted to your needs at any time. And you only pay for the business processes you use – for the package you need.