Fintech company Capitolis leveraged the optimization solution of the UK Clearing House, LCH, to enable banks to better manage risk in the foreign exchange industry, particularly in forwards, swaps and cross-currency swaps.
According to a company statement issued today (Tuesday), the integration of LCH’s FX Smart Clearing solution will enable banks, through Capitolis technology, to find the ideal capital and funding situation between cleared and non-clearing markets by moving optimized trades where they best fit.
“The combination of FX Smart Clearing and post-trade optimization technology is the ideal capital management approach for our clients,” said Gil Mandelzis, CEO and Founder of Capitolis. “The relationship with LCH ForexClear, along with our network of participating global banks, is an evolving and forward-looking model for the industry, bringing multilateral optimization to the next level by including
clearing
clearing
Clearing is a general term that simply means many different things depending on the topic and the relevant industry. Most commonly, this refers to the mutual exchange between banks of checks and bills of exchange, and the settlement of spreads, or total claims settled in a clearinghouse. In finance and banking, the word clearing has different meanings depending on which business model is most specific. Transferring checks from the bank where they were deposited to the bank on which they were drawn. y
Clearing is a general term that simply means many different things depending on the topic and the relevant industry. Most commonly, this refers to the mutual exchange between banks of checks and bills of exchange, and the settlement of spreads, or total claims settled in a clearinghouse. In finance and banking, the word clearing has different meanings depending on which business model is most specific. Transferring checks from the bank where they were deposited to the bank on which they were drawn. y
Read this term node.”
Capitolis said it demonstrated the benefits that FX Smart Clearing will add to its existing standard approach to counterparty credit risk (SA-CCR) by partnering with nine banks. The proof of concept reached a network return of 42% of total financing costs, including equity financing. SA-CCR is a methodology that measures counterparty credit risk.
Furthermore, LCH expects to leverage the new initiative in partnership with Capitolis to reach out to more market participants to benefit from ForexClear. James Pearson, Head of LCH ForexClear commented: “FX Smart Clearing is another tool we offer banks to improve their finances financially, unlocking capital restrictions and helping to ensure a safe and efficient financial system.”
Capitolines targets global banks
Founded in 2017, Capitolis aims to support financial solutions for banks as well as institutional investors. The New York-based firm counts venture capital firms, including Andreessen Horowitz and Sequoia Capital, among its investors.
while, finance poles I recently reported that the pan-European stock exchange, Euronext, announced its decision to sell its majority stake in LCH SA. The stake will be purchased by LCH Group Holdings for €111 million and the sale is expected to be completed in July 2023.
Euronext acquired LCH SA in 2017 through a stock exchange transaction whereby Euronext exchanged its 2.3% ownership in LCH Group for an 11.1% stake in LCH SA. The latter is a clearing house based and regulated in France.
TradingView integrates FYERS; Crypto.com has opened an innovation lab; Read snippets of today’s news.
Fintech company Capitolis leveraged the optimization solution of the UK Clearing House, LCH, to enable banks to better manage risk in the foreign exchange industry, particularly in forwards, swaps and cross-currency swaps.
According to a company statement issued today (Tuesday), the integration of LCH’s FX Smart Clearing solution will enable banks, through Capitolis technology, to find the ideal capital and funding situation between cleared and non-clearing markets by moving optimized trades where they best fit.
“The combination of FX Smart Clearing and post-trade optimization technology is the ideal capital management approach for our clients,” said Gil Mandelzis, CEO and Founder of Capitolis. “The relationship with LCH ForexClear, along with our network of participating global banks, is an evolving and forward-looking model for the industry, bringing multilateral optimization to the next level by including
clearing
clearing
Clearing is a general term that simply means many different things depending on the topic and the relevant industry. Most commonly, this refers to the mutual exchange between banks of checks and bills of exchange, and the settlement of spreads, or total claims settled in a clearinghouse. In finance and banking, the word clearing has different meanings depending on which business model is most specific. Transferring checks from the bank where they were deposited to the bank on which they were drawn. y
Clearing is a general term that simply means many different things depending on the topic and the relevant industry. Most commonly, this refers to the mutual exchange between banks of checks and bills of exchange, and the settlement of spreads, or total claims settled in a clearinghouse. In finance and banking, the word clearing has different meanings depending on which business model is most specific. Transferring checks from the bank where they were deposited to the bank on which they were drawn. y
Read this term node.”
Capitolis said it demonstrated the benefits that FX Smart Clearing will add to its existing standard approach to counterparty credit risk (SA-CCR) by partnering with nine banks. The proof of concept reached a network return of 42% of total financing costs, including equity financing. SA-CCR is a methodology that measures counterparty credit risk.
Furthermore, LCH expects to leverage the new initiative in partnership with Capitolis to reach out to more market participants to benefit from ForexClear. James Pearson, Head of LCH ForexClear commented: “FX Smart Clearing is another tool we offer banks to improve their finances financially, unlocking capital restrictions and helping to ensure a safe and efficient financial system.”
Capitolines targets global banks
Founded in 2017, Capitolis aims to support financial solutions for banks as well as institutional investors. The New York-based firm counts venture capital firms, including Andreessen Horowitz and Sequoia Capital, among its investors.
while, finance poles I recently reported that the pan-European stock exchange, Euronext, announced its decision to sell its majority stake in LCH SA. The stake will be purchased by LCH Group Holdings for €111 million and the sale is expected to be completed in July 2023.
Euronext acquired LCH SA in 2017 through a stock exchange transaction whereby Euronext exchanged its 2.3% ownership in LCH Group for an 11.1% stake in LCH SA. The latter is a clearing house based and regulated in France.
TradingView integrates FYERS; Crypto.com has opened an innovation lab; Read snippets of today’s news.
