Galen Stops speaks to market sources about the feasibility of splitting prime services into credit provision and trade processing.
Capitolis is the latest venture headed by Gil Mandelzis, the former EBS BrokerTec and Traiana CEO. Mandelzis co-founded the company along with his former Icap and Traiana colleague, Igor Teleshevsky, and former Thomson Reuters CEO, Tom Glocer in New York earlier this year. Mandelzis operates as CEO of the firm, Teleshevsky is VP of R&D and Glocer is listed as an executive chairman.
Capitolis, the financial services technology provider established by former Traiana CEO and head of EBS Brokertec, Gil Mandelzis; former CEO of Thomson Reuters, Tom Glocer; and Igor Teleshevsky, also formerly of Traiana, says it has secured two rounds of financing, a Series A investment of $20 million led by Index Ventures, and a prior $9 million Seed round led by Sequoia Capital. Capitolis is designing multiple new products and services to address capital markets constraints, initially in equities and foreign exchange.
Gil Mandelzis, CEO and founder of Capitolis, has been appointed as a non-executive director of Euronext US.
Stéphane Boujnah, CEO and chairman of the managing board of Euronext, says: “The experience of Gil Mandelzis, our new non-executive director of Euronext US Inc., will be a major asset for our group. As a successful serial entrepreneur in the field of capital markets platforms, Gil will further strengthen our positioning in the United States and our ambition to diversify the revenues of Euronext over the coming years”.
Mandelzis comments: “Euronext is ideally positioned to grow and play a role in the future development of both US and European markets. The pace of change in market structure and as well as new technology and trading solutions has accelerated and I look forward to supporting Stéphane and the Euronext team in leading the market through these changes”.
Capitolis has gone live with a foreign exchange credit switching service, Capitolis Switch.
In a release issued today, Capitolis says that its mission is to address capital markets constraints in the financial system and claims that, with the launch of Capitolis Switch, a key credit issue is addressed. The firm says that this service will enable the unbundling of execution, processing, capital and risk in FX prime broking (FXPB).
Capitolis says it is working with Citi, Jefferies and FXCM in launching this new service.
Capitolis, the technology company founded by ex-Icap (now NEX Group) executive Gil Mandelzis, ex-Thomson Reuters CEO Tom Glocer and Igor Teleshevksy, formerly of Traiana, has launched a novation service in FX.
The firm says that Citi, HSBC, BlueCrest and Brevan Howard, among many other market participants, have collaborated with the firm on the service, which it adds is the first of its kind in FX.
Capitolis Novation automates the currently manual workflow in both FX prime broking and bilateral trading, thus providing capital efficiencies for the FX market.
Daryl Hooker, formerly global head of spot FX and precious metals at NEX Markets, is joining Capitolis in London as a consultant.
Hooker will be responsible for product and business development and will be reporting to Gil Mandelzis, co-founder and CEO of Capitolis.
Hooker spent almost 19 years at NEX and its forerunner Icap, starting in 2000 after joining from Reuters – a firm he joined after a long career in inter-dealer broking. He is also chairman of the International Ruble Settlement Forum, which was set up to help mandate the full adoption and usage of Russia’s real time gross settlement system (RTGS) for the ruble.
NEX Optimisation and Capitolis have entered into a partnership to provide immediate access to Capitolis’ FX novation service through the NEX Infinity platform.
Launched in 2018, Capitolis has created a platform for end-to-end FX novation processing to try and bring greater standardisation, automation and transparency to the buy and sell sides.
Complying with the ISDA Novations Protocol, ‘Capitolis Novation’ automates the currently manual workflow in both FX prime broking and bilateral trading. The service addresses operational, audit, cost, speed and scale inefficiencies resulting from the manual process.
The Foreign Exchange Professionals Association (FXPA) has announced the addition of Capitolis as the newest associate level member of the FX trade group.
“The changing market landscape and regulations are forcing all of us to think differently around the future structure of the market,” says Gil Mandelzis, CEO and founder of Capitolis. “Capitolis is responding to those changes by finding new ways of connecting capital with the best collaborative solutions to clients all over the world. We are pleased to support the FXPA in their efforts to benefit the industry and the wider public by promoting better standards and practices in accordance with their mission to foster a healthy global FX market.”
John Shay, president of FXPA, adds, “We are thrilled to welcome Capitolis to our ranks at FXPA, as Gil and team represent another vibrant, innovative and potentially disruptive solution to the global FX space that our membership community is well positioned to embrace.”
Capitolis has made three senior hires as it looks to continue expanding its novation business. Paul Perdoni and Sam Grant joined the firm in December, with the former charged with focusing on EMEA strategic accounts and the latter on EMEA buy side sales. In addition, Ralitza Fortunova will join Capitolis in February 2019, she has been appointed to the role of managing US strategic accounts. Perdoni and Grant are based in London, while Fortunova will be based in New York.
Capitolis has announced that Citi and HSBC are the first FX prime brokers to go live on its novation service.The two banks were live in December 2018 and contributed to bringing the service to market alongside Capitolis. The service, called Capitolis Novation, is a technology platform that automates manual workflows in both FX prime broking and bilateral trading, working collaboratively to provide capital efficiencies for the FX market. The service aims to help reduce overall balance sheet notional and risk exposures that banks currently employ to meet their regulatory capital requirements.
Capitolis, a technology provider for the capital markets, announces today that the number of participants on Capitolis Novation has grown to more than 20 bank and non-bank customers. As well as previously announced Citi, HSBC, BlueCrest and Brevan Howard, other market participants including Deutsche Bank, Standard Chartered, Nomura and Societe Generale are collaborating with Capitolis on the service, which Capitolis says is the first of its kind in FX. The platform is now fully live and processing the novation of FX options contracts amongst multiple participants. Additional functionalities and other balance sheet reduction models are currently being tested and rolled out including bilateral option novation and forwards and swaps novation.