Capitolis, the pioneering technology provider for the capital markets, has launched a novation service in foreign exchange (FX).
Market participants including Citi, HSBC, BlueCrest, and Brevan Howard have collaborated with Capitolis on this service, which is the first of its kind in FX.
Capitolis Novation automates the manual workflow in both FX prime broking and bilateral trading. This provides capital efficiencies for the FX market.
The service helps militate against costs and inefficiencies linked to the manual process of novation that banks currently employ to meet their regulatory capital requirements, as well as managing client credit capacity.
With this service, Capitolis automates the novation process for all market participants and FX instruments. The solution is currently, being tested and is expected to go live in the next few weeks.
Gil Mandelzis, CEO of Capitolis, commented: “Over the past few months we’ve been working with major market participants on developing an industry solution for novations. We are grateful to the strong support our solution has received from prime brokers, executing banks and leading buy-side firms.”
Sanjay Madgavkar, global head of FX prime brokerage at Citi, said: “Capitolis is focused on innovative ideas, which will help prime brokers and their clients.”
Vincent Bonamy, head of global Intermediary Services at HSBC, added: “Our key focus as a leading FX house is to provide the best level of client service possible. This partnership opens a new way to increase the quality and efficiency of our offerings in terms of transparency and automation.”
Bevan Kaminer, COO at Brevan Howard, said: “We support the efforts of Capitolis in improving standards of practice in the FX novation market, notably in terms of the efficiency savings this can bring to buy-side firms, and look forward to our continued collaboration.”
Paul Lawrence, operations manager at BlueCrest, commented: “The Capitolis option novation solution is a positive step forward in terms of bringing a level of standardisation and efficiency to a traditionally operationally intensive process.”
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