Singaporean FinTech start-up SynOption closes second round of funding

By Edil Corneille

Singapore-based FinTech start-up SynOption announced today the closure of its second round of funding in June 2020. SynOption’s electronic trading platform, Optimus, simplifies the execution of FX Option trades for institutional investors by enabling them to trade on the best price from multiple banks at a centralised venue.

“The launch of our platform has demonstrated to market participants that there is an intuitive and simple way to trade on FX Options, despite the complexity of the product. Our pre-trade tools help enable a client to take more informed decisions on what the best expressions of their trade are, and our post trade tools enable them to analyse liquidity effectively. Participant onboarding has been extremely encouraging and we are extremely positive about developing a sustainable trading ecosystem for the future,” says Anchal Jain, CEO and Founder of SynOption. Anchal is a veteran in the FX Options markets. As Managing Director at JPMorgan Chase Bank, he used to head the bank’s FX Options business in Asia before moving to Balyasny Asset Management as a Hedge Fund Portfolio Manager.

SynOption mentioned that it has garnered keen interest from investors, including big names like Kristal.AI, who have joined an already elite group of FX industry veterans as investors. The first round of funding was in October 2018.

“We achieved the fundraising milestone with great support from Kristal.AI, an award-winning AI-driven investment management company,” Anchal stated.

SynOption is said to be the first firm to be accepted in Monetary Authority of Singapore’s (MAS) Sandbox Express and enjoys that status till Dec 31, 2020. The company intends to apply for a Recognised Market Operator (RMO) license in Singapore. With the MAS focus on making Singapore an FX Hub in the region, SynOption hopes to be able to contribute to the goal, whilst benefit from building relationships with the players who are adopting the FX Hub.

“The COVID-19 pandemic has led to more FX trading professionals to work from home, and is impacting trading continuity, in an increasingly more volatile environment. Traditional chat or voice based execution models do not offer the same level of execution certainty as before if your sales coverage infrastructure gets dispersed. The delays added in reaching people make the electronic execution model even more attractive now. We expect firms to look towards digital solutions like SynOption in complex products too, and be prepared for all possible disruptions,” says SynOption Co-Founder and COO, Gurpreet Chhatwal, who has a vast experience with start-ups.

SynOption has its sights set on the next wave of digitisation focusing on FX Options. “The steady onboarding activity we have seen from Liquidity Providers and Hedge funds has led to encouraging growth in the quotes requested and trades executed on the platform. More importantly feedback from current users has led to extremely encouraging reviews and referrals, which have started conversations with multiple banks and clients,” Gurpreet says. With multiple liquidity providers and clients already on board, the aim of the company is to expand to the West by as early as 2021.