Capitolis Launches Fast-Track Novations Technology, First of its Kind in the FX Options Market
July 30 2024 - 8:30AM
Business Wire
Improved technology and processes allow
participants to fast-track tear-ups via the Capitolis Novations
platform
Capitolis, the technology company creating safer and more
vibrant capital markets, announced it has successfully launched its
fast-track Novations technology with the execution of a same day
tear-up. Reaching this milestone—the first of its kind in the
foreign exchange (FX) options market—will significantly reduce the
time and resources required by banks, prime brokers, and hedge
funds in the approval process.
Novation tear-ups represent a meaningful amount of novations
completed on the Capitolis platform and fast-tracking trades will
bring a large benefit to the market. Previously, it took up to 10
days (T+10) to complete a tear-up largely due to the manual process
involved to get the novations approved by the various parties.
Capitolis believes that through improved technology and processes,
up to 70% of all novations can be executed at T+1 or better.
Capitolis has been working with several prime brokers, executing
banks, and some of the world’s largest hedge funds on the design of
this fast-track technology. It has been thoroughly tested and is
now fully launched for all platform participants to leverage.
“Capitolis had already made tremendous progress in reducing risk
in the market, allowing for more novations to be completed,
increasing efficiency of balance sheets, and reducing gross
notional for our participants. We’ve also seen massive volume
growth, almost 50%, on the platform in the past year and have added
many more FX prime brokers, executing banks, and major buy-side
participants,” said Gil Mandelzis, CEO & Founder, Capitolis.
“We now look forward to taking our network to the next level by
getting as close as possible to near real-time novation processing
and completion.”
“As part of our broader industry commitment to lead efficiency
in the Financing and Clearing industry, we welcome this new process
to significantly reduce the time and resources spent on this
important FX Prime Brokerage process,” said Craig Robertson,
Managing Director, Liquid Financing, Barclays.
Last year, Capitolis expanded its novation product to include
agency flow, enabling automation of agency novation while
maintaining anonymity. The company’s Novations platform gained
strong momentum to close out 2023: Capitolis onboarded most major
buy-side and sell-side market participants.
To learn more about the Capitolis Novations platform, visit
https://capitolis.com/novations.
About Capitolis
We believe the financial markets can and should work for
everyone. Capitolis is the technology company creating safer and
more vibrant financial markets by unlocking capital constraints and
enabling greater access to more diversified capital and investment
opportunities. Rooted in advanced technology and deep financial
expertise, Capitolis powers groundbreaking financial solutions that
drive growth for global and regional banks – and institutional
investors alike. Capitolis is backed by world class venture capital
firms, including Canapi Ventures, 9Yards Capital, SVB Capital,
Andreessen Horowitz (a16z), Index Ventures, Sequoia Capital, Spark
Capital, and S Capital, as well as leading global banks such as
J.P. Morgan, Citi and State Street.
Founded in 2017, our team brings decades of experience in
launching successful startups, technology, and financial services.
Capitolis was named to Fast Company’s prestigious annual list of
The World’s Most Innovative Companies for 2023, CNBC’s World's Top
Fintech Companies 2024 list, ranked #68 on the 2023 Deloitte
Technology Fast 500 list, and was named “Best FX Software Provider”
in the 2023 Euromoney Foreign Exchange Awards. Most recently,
American Banker recognized Capitolis among the Best Places to Work
in Fintech after the company was named by Crain’s New York Business
as one of New York’s 100 Best Places to Work in 2023 for the second
consecutive year. For more information, please visit our website at
www.capitolis.com or follow us on LinkedIn.
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version on businesswire.com: https://www.businesswire.com/news/home/20240730330488/en/
Shannon Mullins Sloane & Company smullins@sloanepr.com
Brian Zilberfarb Capitolis brianz@capitolis.com