Citi and HSBC now live on Capitolis Novation 8 February 2019New York Reporter: Jenna Lomax
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Citi and HSBC are the first foreign exchange (FX) prime brokers to be live on Capitolis Novation.
The two banks officially went live on the service in December 2018.
Capitolis Novation is a technology platform which automates the currently manual workflow in both FX prime broking and bilateral trading, working to reduce the time it takes for FX options novations to complete, for the benefit of the sell and buy-side.
The service helps reduce overall balance sheet notional and risk exposures that banks currently employ to meet their regulatory capital requirements.
Launched in May 2018, Capitolis is the first industry-wide platform for end-to-end FX novation processing.
Christopher Perkins, global head of over-the-counter clearing and head of foreign exchange prime broking at Citi, said: “Citi remains focused on delivering industry-leading capital and operational efficiencies to our clients with robust scale and automation.”
He added: “We are excited to partner with Capitolis since its inception to drive capital optimisation and reduce costs through automated FX options novation processing."
Gil Mandelzis, CEO of Capitolis, said: “Citi and HSBC have partnered with Capitolis to be at the vanguard of establishing this industry solution for FX novation. We are grateful for them for helping us bring it to market with their incredible support, technical expertise and collaboration to shape what we believe will be a meaningful solution to address a key constraint in the capital markets.”
He added: “We are further grateful that they have used this service extensively across all their client activity, with executing banks and counterparties and for their proactive commitment to growing the community of participants across the buy and sell-side.”
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