Capitolis’s financial technology platform aims to unlock capital constraints for its clients by providing access to diversified capital and investment opportunities. Recognising significant inefficiencies in bank-held derivative portfolios, Capitolis works with clients to reduce risk, increase stability, and improve capital efficiency. With that aim, over the past year, Capitolis has introduced several strategies that have significantly enhanced its foreign exchange novation business.
A major innovation is their ability to novate agency trades in the FX options market while maintaining anonymity – an industry first. This development, built on their automated novation service, has expanded the scope of FX options novations, reducing risk and capital requirements. As a result, Capitolis is now the sole provider offering agency novation, increasing efficiency and reducing market risks.
The firm has also focused on expanding its network of bank and non-bank customers to enhance value for all participants. By innovating to streamline the execution process and launching new optimization opportunities, the company has grown its FX novations platform, enabling higher novation volumes and more effective FX options portfolio optimization.