Improved technology and processes allow participants to fast-track tear-ups via the Capitolis Novations platform

Capitolis, the technology company creating safer and more vibrant capital markets, announced it has successfully launched its fast-track Novations technology with the execution of a same day tear-up. Reaching this milestone—the first of its kind in the foreign exchange (FX) options market—will significantly reduce the time and resources required by banks, prime brokers, and hedge funds in the approval process.

Novation tear-ups represent a meaningful amount of novations completed on the Capitolis platform and fast-tracking trades will bring a large benefit to the market. Previously, it took up to 10 days (T+10) to complete a tear-up largely due to the manual process involved to get the novations approved by the various parties. Capitolis believes that through improved technology and processes, up to 70% of all novations can be executed at T+1 or better.

Capitolis has been working with several prime brokers, executing banks, and some of the world’s largest hedge funds on the design of this fast-track technology. It has been thoroughly tested and is now fully launched for all platform participants to leverage.

“Capitolis had already made tremendous progress in reducing risk in the market, allowing for more novations to be completed, increasing efficiency of balance sheets, and reducing gross notional for our participants. We’ve also seen massive volume growth, almost 50%, on the platform in the past year and have added many more FX prime brokers, executing banks, and major buy-side participants,” said Gil Mandelzis, CEO & Founder, Capitolis. “We now look forward to taking our network to the next level by getting as close as possible to near real-time novation processing and completion.”

“As part of our broader industry commitment to lead efficiency in the Financing and Clearing industry, we welcome this new process to significantly reduce the time and resources spent on this important FX Prime Brokerage process,” said Craig Robertson, Managing Director, Liquid Financing, Barclays.

Last year, Capitolis expanded its novation product to include agency flow, enabling automation of agency novation while maintaining anonymity. The company’s Novations platform gained strong momentum to close out 2023: Capitolis onboarded most major buy-side and sell-side market participants.

To learn more about the Capitolis Novations platform, visit https://capitolis.com/novations.

About Capitolis

We believe the financial markets can and should work for everyone. Capitolis is the technology company creating safer and more vibrant financial markets by unlocking capital constraints and enabling greater access to more diversified capital and investment opportunities. Rooted in advanced technology and deep financial expertise, Capitolis powers groundbreaking financial solutions that drive growth for global and regional banks – and institutional investors alike. Capitolis is backed by world class venture capital firms, including Canapi Ventures, 9Yards Capital, SVB Capital, Andreessen Horowitz (a16z), Index Ventures, Sequoia Capital, Spark Capital, and S Capital, as well as leading global banks such as J.P. Morgan, Citi and State Street.

Founded in 2017, our team brings decades of experience in launching successful startups, technology, and financial services. Capitolis was named to Fast Company’s prestigious annual list of The World’s Most Innovative Companies for 2023, CNBC’s World's Top Fintech Companies 2024 list, ranked #68 on the 2023 Deloitte Technology Fast 500 list, and was named “Best FX Software Provider” in the 2023 Euromoney Foreign Exchange Awards. Most recently, American Banker recognized Capitolis among the Best Places to Work in Fintech after the company was named by Crain’s New York Business as one of New York’s 100 Best Places to Work in 2023 for the second consecutive year. For more information, please visit our website at www.capitolis.com or follow us on LinkedIn.

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