TransFICC Attracts Further Investment

Connectivity solutions provider TransFICC has closed a Series A investment round for £5.75 million. Led by AlbionVC, it included new strategic investments from ING Ventures and HSBC, who join existing shareholders, Citi, Illuminate Financial, Main Incubator (the R&D unit of Commerzbank Group) and The FinLab.

The investment will be used to extend product and market coverage for existing and new clients. TransFICC’s current clients include five global investment banks and one global market data vendor.

TransFICC resolves the issue of market fragmentation, especially in the highly complex and diverse fixed income world, by providing banks and asset managers with a unified low-latency, robust and scalable API. Its One API for eTrading platform provides connectivity to multiple trading venues while supporting a variety of workflows across asset classes such as Rates and Credit Bonds, and Interest Rate Swaps. It enables financial institutions to access their required e-trading venues, while streamlining technology requirements and reducing operational costs.

“Banks and asset managers are demanding technology solutions which deliver automation and increased efficiency, but they also want a modern and flexible modular design,” says Steve Toland, founder of TransFICC. “Our technology solution addresses the significant issue of market fragmentation, while enabling trading firms to cut costs and develop a technology stack combining outsourced and in-house technology. Our four bank shareholders will help us to closely align our services with client requirements, meaning we are well positioned to capitalise on banks and asset managers looking for a modern FinTech alternative to legacy systems.”

Robert Whitby-Smith, partner at AlbionVC, adds, “We believe TransFICC has a huge opportunity to become the de factostandard API gateway between banks and trading venues. This view is supported by TransFICC’s five banking clients and an extensive prospect pipeline. We are delighted to join such a strong syndicate of investors supporting this exciting opportunity and look forward to working closely with Steve and the team.”

Highlighting that the changing fixed income market structure means banks need to evolve their legacy systems with simpler and innovative technology solutions, Stephane Malrait, head of market structure and innovation at ING says, “Banks need to reduce their technology costs and TransFICC is addressing all these issues at a rapid pace,” while Seth Osher, global head of flow fixed income IT at HSBC says, “TransFICC’s open source technology, automated testing and delivery processes enable the firm to develop software rapidly, while the fact that they use both cloud technology and co-location services allows HSBC to more efficiently deploy systems where we need them.”

The firm also received endorsement from existing investor Citi, with Stuart Riley, global head of operations and technology for markets and securities at the bank saying, “Working with TransFICC as part of our Innovation Lab has been extremely positive. Providing the company with office space in our lab allowed Citi and TransFICC development teams to work side-by-side and co-create very rapidly, integrating development and testing processes to deliver and release value-add functionality on a daily basis. Our experience with TransFICC has paved the way for a new operating model for Citi with start-ups.”

Colin Lambert

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