November 17, 2021 - Trade compression and capital optimisation provider Capitolis today announced it will deliver to customers on State Street’s TradeNeXus platform, offering access to identify optimisation opportunities, eliminate large and unnecessary positions, and free up capital through Capitolis’ optimisation, novation, and trade compression solutions. Capitolis will connect to TradeNeXus’ large network of asset managers and executing banks, who electronically match, confirm, and communicate FX and Money Market settlement information.
The announcement comes as financial institutions are increasingly leveraging optimisation services to help them comply with new regulations such as Standardised Approach for measuring Counterparty Credit Risk (SA-CCR) and Uncleared Margin Rules (UMR), which will impact their operations significantly over the next year. The collaboration has the potential to affect returns on capital and drive new cost efficiencies.
“Now is an opportune time for Capitolis to enter into this collaboration with State Street’s award-winning TradeNeXus platform with forthcoming regulations on capital requirements impacting how financial institutions address their balance sheets,” said Gil Mandelzis, CEO and founder of Capitolis. “State Street has been a fantastic partner to us for years, and we are excited to accelerate our efforts to bring optimisation services to more buy-side institutions. TradeNeXus has unparalleled connectivity within the buy-side community. Together, we are revolutionising how financial institutions engage with one another.”
“With deep capital markets expertise and an innovative technology platform, Capitolis is the ideal partner to complement the TradeNeXus offering, particularly with the implementation of new regulation in the near term,” said Louisa Kwok, Managing Director and Head of Product for TradeNeXus. “Combining Capitolis’ next-gen solutions with the TradeNeXus platform will be a critical differentiator in helping our clients optimise their workflows and post-trade processes.”
The news of the collaboration follows Capitolis’ recent announcement that it entered into an agreement to acquire LMRKTS. Earlier this year, the company also announced a partnership with leading FX settlement provider CLS to streamline trading and settlement for banks in the $6.6 trillion global currency market.
Capitolis is the leading SaaS platform that drives financial resource optimisation for capital markets. Founded in 2017, the network software enables financial institutions to optimise their balance sheets with more than 100 financial institutions, including banks, hedge funds, and asset managers, leveraging Capitolis technology to bring their services to market with higher levels of return, while using fewer of their financial resources.
Capitolis is backed by venture capital firms, including Andreessen Horowitz, Index Ventures, Sequoia Capital, Spark Capital, SVB Capital, and S Capital, as well as leading global banks such as Citi, J.P. Morgan, and State Street. Our team brings decades of experience in launching successful startups, technology, and financial services and is growing rapidly in our offices in New York, London, and Tel Aviv.
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