The fintech firm Capitolis has released a statement highlighting the expansion of its novations platform. This platform, which aims to optimize investors’ portfolios by automatically replacing existing contracts with new ones, has onboarded key buy-side and sell-side market participants.

According to a statement shared by the company on Businesswire, Gil Mandelzis, the CEO and Founder of Capitolis, mentioned: “We’ve seen great benefit in bringing most major market participants together on one automated novations platform, and many that weren’t participating in the past are now actively engaged on the platform.”

Capitolis’ FX novations platform optimizes the needs of various market participants, including prime brokers, executing banks, hedge funds, and money managers. Capitolis is reportedly expanding this network to encompass bank and non-bank customers.

Targeting Optimization of FX Markets

In June, Capitolis joined forces with LCH, the British clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term giant, to enhance risk management in the FX industry. Capitolis embraced LCH's FX Smart Clearing solution to enable banks to optimize risk management across FX forwards, swaps, and cross-currency swaps. This partnership focused on the synergy of LCH's clearing services with Capitolis' post-trade optimization technology.

The fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term firm mentioned that this collaboration can enhance cleared and uncleared markets, ensuring ideal capital and funding allocation.

Capitolis, in partnership with nine major banks, highlighted the potential of FX Smart Clearing. This proof-of-concept yielded a reduction of 42% in total funding costs, signifying a standardized approach to counterparty credit risk methodology, Finance Magnates reported.

Capitolis Expands Offerings for Financial Institutions

James Pearson, the Head of LCH's ForexClear, highlighted how FX Smart Clearing contributes to unlocking capital constraints for banks. During the unveiling of this offering, he mentioned that the platform fosters a safer and more efficient financial ecosystem. This initiative aims to benefit a broader spectrum of market participants.

Established in 2017, Capitolis' mission extends beyond banks to institutional investors. It is backed by prominent venture capital firms like Andreessen Horowitz and Sequoia Capital. According to the company, its latest steps signify the strides in reshaping the FX market landscape.