Financial technology firm Capitolis has introduced new technology to reduce the time and resources needed for banks, brokers, and hedge fund firms in approval processes. The company announced today that it has achieved a milestone in executing same-day tear-ups for FX options.

Efficiency in FX Options

This technology reportedly reduces the time and costs needed by banks, prime brokers, and hedge funds in the approval process. Traditionally, completing a novation tear-up, a term referring to terminating or canceling an existing contract and replacing it with a new one, could take up to 10 days due to the manual approval steps involved.

Capitolis' new technology aims to lower this time down to T+1 or better for up to 70% of all novations. Working in collaboration with several prime brokers, executing banks, and major hedge funds, Capitolis has designed and rigorously tested the fast-track technology.

The new system is reportedly fully operational and available to all participants on the Capitolis platform. Last year, Capitolis expanded its novation product to include agency flow, allowing for the automation Automation Automation is defined as the procedure of making an apparatus, a process, or a system to operate by mechanical or electronic devices that replace human labor. Additionally, automation is also sometimes referred to as mechanization or robotization. For example, employees have many costly needs, including government regulations. However, robotic workers don’t need much other than some routine maintenance and the occasional bug fix for an equipment malfunction or software bug. There is no overtime Automation is defined as the procedure of making an apparatus, a process, or a system to operate by mechanical or electronic devices that replace human labor. Additionally, automation is also sometimes referred to as mechanization or robotization. For example, employees have many costly needs, including government regulations. However, robotic workers don’t need much other than some routine maintenance and the occasional bug fix for an equipment malfunction or software bug. There is no overtime Read this Term of agency novation while maintaining participant anonymity.

Gil Mandelzis, CEO and Founder of Capitolis highlighted the platform's impressive progress: “Capitolis had already made tremendous strides in reducing market risk, enabling more novations, and enhancing balance sheet efficiency for our participants. Over the past year, we've seen a nearly 50% increase in volume on the platform and added many new FX prime brokers, executing banks, and significant buy-side participants.”

Removing Capital Constraints

This expansion added momentum to the novations platform, enabling it to onboard most major buy-side and sell-side Sell-Side Those in the financial industry involved with the production, marketing, and the sale of bonds, forex, stocks, and other financial instruments constitute the sell-side.Products and services produced by the sell-side are geared towards those who on the buy-side. You can think of the sell-side and buy-side like a coin, you cannot have one side without the other. The sell-side is comprised of individuals, firms, fintech companies, and market makers, who are responsible for providing liquidity in th Those in the financial industry involved with the production, marketing, and the sale of bonds, forex, stocks, and other financial instruments constitute the sell-side.Products and services produced by the sell-side are geared towards those who on the buy-side. You can think of the sell-side and buy-side like a coin, you cannot have one side without the other. The sell-side is comprised of individuals, firms, fintech companies, and market makers, who are responsible for providing liquidity in th Read this Term market participants by the end of 2023. Capitolis aims to ensure financial markets work for everyone by removing capital constraints and providing greater access to diversified capital and investment opportunities.

Combining advanced technology with deep financial expertise, Capitolis develops innovative financial solutions that drive growth for global and regional banks and institutional investors. The company enjoys robust backing from top venture capital firms and leading global banks, including JP Morgan, Citi, and State Street.

Last year, Capitolis disclosed plans to expand its novations platform. This new platform, which seeks to optimize investors’ portfolios by replacing existing contracts with new ones, has reportedly added key buy-side and sell-side market players. The platform aims to enhance the needs of prime brokers, executing banks, hedge funds, and money managers.