Capitolis to integrate with State Street’s TradeNeXus platform

By Edlyn Cardoza

Capitolis, the FinTech company re-imagining how the capital markets operate, recently announced it would deliver to customers on State Street’s TradeNeXus platform access to identify optimization opportunities, eliminate significant and unnecessary positions, and free up capital through Capitolis’ optimization, novation, and trade compression solutions. Capitolis will connect to TradeNeXus’ extensive network of asset managers and executing banks, who electronically match, confirm, and communicate FX and Money Market settlement information.

The announcement comes as financial institutions are increasingly leveraging optimization services to help them comply with new regulations such as Standardized Approach for measuring Counterparty Credit Risk (SA-CCR) and Uncleared Margin Rules (UMR), which will impact their operations significantly over the next year. The collaboration has the potential to affect returns on capital and drive new cost efficiencies.

“Now is an opportune time for Capitolis to enter into this collaboration with State Street’s award-winning TradeNeXus platform with forthcoming regulations on capital requirements impacting how financial institutions address their balance sheets,” said Gil Mandelzis, CEO and founder of Capitolis. “State Street has been a fantastic partner to us for years, and we are excited to accelerate our efforts to bring optimization services to more buy-side institutions. TradeNeXus has unparalleled connectivity within the buy-side community. Together, we are revolutionizing how financial institutions engage with one another.”

“With deep capital markets expertise and an innovative technology platform, Capitolis is the ideal partner to complement the TradeNeXus offering, particularly with the implementation of new regulation in the near term,” said Louisa Kwok, Managing Director and Head of Product for TradeNeXus. “Combining Capitolis’ next-gen solutions with the TradeNeXus platform will be a critical differentiator in helping our clients optimize their workflows and post-trade processes.”

The news of the collaboration follows Capitolis’ recent announcement that it agreed to acquire LMRKTS. Earlier this year, the company also announced a partnership with leading FX settlement provider CLS to streamline trading and settlement for banks in the $6.6 trillion global currency market.