Capitolis Hits New Optimisation Peak
Posted by Colin Lambert. Last updated: January 27, 2023
Capitolis says it has completed its 19th SA-CCR (Standardised Approach for Counterparty Credit Risk) optimisation in January, with this latest run incorporating a record number of entities, driving a record reduction of over $290 billion in effective notional. Over the last 12 months, Capitolis says it has enabled a $2.5 trillion reduction in SA-CCR effective notional.
The SA-CCR framework, which seeks to normalise and standardise the capital requirements on derivatives portfolios for financial institutions, has been phased in globally over the past few years to provide a uniform way to calculate counterparty credit exposures.
“We are excited by this latest milestone and the overall momentum of our business,” says Gil Mandelzis, CEO and founder of Capitolis. “Our latest SA-CCR run marks another historic achievement for Capitolis. As we build solutions that promote the safety and stability of the capital markets, we are extremely focused on continuing to deliver meaningful capital benefits in an efficient and timely manner and look forward to introducing more innovative solutions to the market.”
The firm says its plan for 2023 is to focus on expanding the size of its network to drive more value for all participants; introduce new innovation to further streamline the execution process; and launch additional, new optimisation opportunities.