Capitolis Hits New High in Novations

Financial resource optimisation provider Capitolis has announced that Novations, its FX novation platform, achieved a record transaction volume of more than $959 billion in notional for FX options novations during the first quarter ended April 30, 2021. This is more than doubling the volume from a year earlier.

Trading volumes continue to hold at record highs, the firm says, making the demand for Capitolis’ analytics and tools stronger than ever across both buy-side and sell-side institutions.

“The Capitolis platform is a truly groundbreaking technology that enables the world’s leading prime brokers, executing banks, hedge funds, and money managers to more effectively interact and manage their balance sheets, unlocking the potential to completely transform how firms trade with one another,” says Ben Tobin, senior vice president, global head of FX at Capitolis. “The growth of Novations over the past year has been tremendous, and we look forward to continually expanding to support our existing and prospective clients with solutions that meet their complex balance sheet needs.”

In addition to achieving record volumes, Capitolis says it has added 11 clients to the Novations platform since August. These new clients, across both the buy and sell side, complement a growing roster of more than 75 leading global financial institutions currently active on the platform, including NatWest, Citi, HSBC, Standard Chartered, Nomura, and Societe Generale. Since its inception nearly three years ago, Capitolis Novations has eliminated positions of more than $4.6 trillion in notional, the firm says.

To support the growth of Novations, Capitolis has added key features for an improved user experience, including enhanced functionalities that simplify the movement of FX instruments between prime brokers and the larger marketplace, and advanced analytics on the status of all pending and completed novations.