Capitolis Cites $1.4 Trillion SA-CCR Savings, Benefits Expansion

In an update, Capital optimisation technology provider Capitolis says it has, through a frequent cadence of compression runs, helped its network of banks reduce SA-CCR effective notional by $1.4 trillion since the start of the year.

The firm also says it has doubled the number of banks taking part in its SA-CCR runs since January 2022 and now works with 70% of the largest global banks.

Capitolis says its recent SA-CCR run provided clients five times the effective notional benefit than they received in the first run as it expands the number of participants, thus multiplying the “network effect”.

The new SA-CCR, or Standardised Approach for Counterparty Credit Risk, framework has become the primary capital and leverage measure for much of the financial industry, especially FX markets as it has been phased in globally over the last few years. It provides a single, standardised method by which financial institutions will be required to measure exposures and ultimately manage and capitalise against.

“The last 6 months at Capitolis have been exciting and fast-paced as the industry adapts to the rollout of SA-CCR, and we have seen great momentum in our business over a short period of time,” says Gil Mandelzis, CEO and founder, Capitolis. “We are growing our network every month and our pipeline is extremely strong. We are looking forward to rolling out additional optimization services to our growing community over the next few months further supporting healthy and safe markets.”