Citi and HSBC Foreign Exchange Prime Broking First to Go Live with Capitolis Novation

Capitolis has dramatically accelerated the completion time for FX
options novations, benefiting prime brokers, executing banks and buy
side participants

Citi and HSBC were live with the service at the end of 2018

NEW YORK & LONDON & TEL-AVIV, Israel–(BUSINESS WIRE)–Capitolis, the pioneering technology provider for the capital markets,
announced today that Citi and HSBC are the first FX prime brokers to be
live on Capitolis Novation, its ground-breaking novation service in
foreign exchange. The two leading banks were live in December 2018 and
contributed to bringing the service to the market alongside Capitolis.
The service has streamlined the novation process, helping to
meaningfully reduce the time it takes for FX options novations to
complete, for the benefit of the sell and buy side.

Capitolis Novation is a technology platform which automates the
currently manual workflow in both FX prime broking and bilateral
trading, working collaboratively to provide capital efficiencies for the
FX market. The service helps reduce overall balance sheet notional and
risk exposures that banks currently employ to meet their regulatory
capital requirements. Launched in May 2018, Capitolis has created the
first industry-wide platform for end-to-end FX novation processing.

Christopher Perkins, global head of OTC clearing and head of foreign
exchange prime broking at Citi said, “Citi remains focused on delivering
industry-leading capital and operational efficiencies to our clients
with robust scale and automation. We are excited to partner with
Capitolis since its inception to drive capital optimization and reduce
costs through automated FX options novation processing.”

Vincent Bonamy, global head of Global Intermediary Services at HSBC
said, “Efficiency and transparency have always been at the heart of our
Global Intermediary Services offering for clients. The FX Prime
Brokerage novation tool will provide access to liquidity and credit in
the FX options market, while allowing clients to offset their positions
across their network of banks.”

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Gil Mandelzis, CEO of Capitolis said: “Citi and HSBC have partnered with
Capitolis to be at the vanguard of establishing this industry solution
for FX novation. We are grateful for them for helping us bring it to
market with their incredible support, technical expertise and
collaboration to shape what we believe will be a meaningful solution to
address a key constraint in the capital markets.

“We are further grateful that they have used this service extensively
across all their client activity, with executing banks and
counterparties and for their proactive commitment to growing the
community of participants across the buy and sell-side. The community is
growing rapidly, and we are adding functionality to the solution. We
believe for the market to continue to grow in a sustainable way it needs
new methods of thinking and infrastructure which this solution
addresses.”

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About Capitolis

Capitolis is a pioneering technology provider for the global capital
markets. Founded by key industry executives from banking and financial
technology, Capitolis’ mission is to build new products and services to
address capital markets constraints, initially in equities and foreign
exchange. These employ Capitolis’ proven expertise in finance,
distribution and processing to better connect appropriate capital with
the best collaborative solutions to clients all over the world. For
further information, please go to our website
and LinkedIn.

Contacts

Media enquiries:
Serra Balls, Eterna Partners
+44 20 3911 0353
[email protected]

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