Capital markets technology provider, Capitolis on Thursday announced that it went live with its foreign exchange credit switching service, Capitolis Switch. The service will address key credit issues like enabling the unbundling of execution, processing, capital and risk in forex prime broking. The new service has been already subscribed by Citi, Jefferies and FXCM.
Capitolis provides technologies in the capital market that remove constraints in the financial system. The firm earlier this year raised $29 million of VC funding from Silicon Valley VCs Index Ventures and Sequoia Capital ($20 million by Index Ventures and rest $9 million Seed round by Sequoia Capital).
Under Capitolis Switch, the provision of credit is expanded to a much broader range of banks and investors. In the current state large global systemically important banks provides the best in class execution and processing, bundled with credit to clients. This enables banks and to maximise capabilities in prime brokerage infrastructure and their substantial network. For credit providers, this brings opportunity to work with new clients while utilizing the scale of processing via the combined technology of deal processors and Capitolis. This brings efficiency to the whole market and brings parties together to the deal.
Gil Mandelzis, CEO of Capitolis, also the former CEO of EBS Broker Tec said:
We are excited to be live with Capitolis Switch and to be working with institutions of the calibre of Citi, Jefferies and FXCM who have demonstrated their innovative thinking in partnering with us to bring this service to the financial markets. This is a completely new approach to the provision of credit in capital markets transactions. We believe it is the first and important step in Capitolis’ vision to better connect appropriate capital with collaborative technology solutions to accelerate growth and enhance economic performance for all involved.”
Sanjay Madgavkar, Managing Director and Global Head of FX Prime Brokerage at Citi said: “We welcome technology developments that enable new flexible credit models which strengthen our FX prime brokerage service. We’re excited by the potential of Capitolis to drive change and are pleased to offer this solution to our clients.”
Brendan Callan, CEO of FXCM Group said: FXCM has been at the forefront of offering cutting-edge trading tools for clients for many years. With this new partnership with Capitolis, we foresee many benefits for liquidity enhancement by the expansion of the credit provision model.
Brandon Mulvihill, Global Head of FX Prime Brokerage at Jefferies commented: Jefferies is committed to making innovative technology available to its clients, and we are thrilled to be a first mover credit provider on the Capitolis platform. Capitolis provides us yet another tool to add strategic value to our clients.