Capitolis, a technology company that creates safer and more vibrant capital markets, announced that it has successfully launched Novations fast-track technology with same-day execution.
Achieving this milestone—the first of its kind in the FX options market—will significantly reduce the time and resources required by banks, prime brokers and hedge funds in the approval process.
The Novation tear-ups represent a significant number of novations completed on the Capitolis platform, and fast-tracking transactions will greatly benefit the market. Previously, it took up to 10 days (T+10) to complete a tear, mainly due to the manual process required to get the innovations approved by the various parties. Capitolis believes that through improved technology and processes, up to 70% of all innovations can be executed in T+1 or better.
Capitolis has worked with many leading stockbrokers, executive banks and some of the largest hedge funds in the world to design this fast track technology. It has been thoroughly tested and is now fully released to leverage all platform participants.
“Capitolis had already made tremendous progress in de-risking the market, enabling the completion of more innovations, increasing balance sheet efficiency and reducing gross notional for participants. We’ve also seen huge volume growth, almost 50%, on the platform in the past year and have added many more FX prime brokers, executive banks and major market-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 processing and completing innovation in near real-time.”
Last year, Capitolis expanded its innovation product to include agency streaming, enabling automation of agency innovation while maintaining anonymity.