Capitolis Sets Sights on Institutions for FX Options Portfolio Automation

<p>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 onboarding key buy-side and sell-side market participants. </p><p>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.” </p><p>Capitolis’ FX novations platform optimizes the needs
of various market participants, including prime brokers, executing banks, hedge
funds, and money managers. <a href="https://www.financemagnates.com/tag/capitolis/" target="_blank" rel="follow">Capitolis</a> is reportedly expanding this network
to encompass bank and non-bank customers.</p><p>Targeting Optimization of FX Markets</p><p>In June, Capitolis <a href="https://www.financemagnates.com/institutional-forex/capitolis-integrates-lchs-clearing-solution-to-optimize-fx-markets/" target="_blank" rel="follow">joined forces with LCH</a>, the
British <a href="https://www.financemagnates.com/terms/c/clearing/">clearing</a> 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.</p><p>The <a href="https://www.financemagnates.com/terms/f/fintech/">fintech</a> firm mentioned that this collaboration can
enhance cleared and uncleared markets, ensuring ideal capital and funding
allocation.</p><p>Capitolis, in <a href="https://www.financemagnates.com/institutional-forex/capitolis-integrates-lchs-clearing-solution-to-optimize-fx-markets/" target="_blank" rel="follow">partnership with nine major banks</a>, 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, <a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance Magnates</a> reported.</p><p>Capitolis Expands Offerings for Financial Institutions</p><p>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.</p><p>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.</p>

This article was written by Jared Kirui at www.financemagnates.com.