Fintech company Capitolis has connected to LCH ForexClear’s FX Smart Clearing solution, as part of an effort to optimise efficiencies for the FX markets.
The connection will aid banks to overcome the challenge of increased costs resulting from the introduction of the standardised approach to counterparty credit risk (SA-CCR), says Capitolis.
Capitolis’ post-trade optimisation tool aims to find optimum capital and funding state between cleared and uncleared markets by moving optimised trades to where they best fit.
Gil Mandelzis, CEO and founder of Capitolis, says: “Combining FX Smart Clearing with our post-trade optimisation technology is the ideal approach to managing capital for our customers.
“The relationship with LCH ForexClear, coupled with our network of participating global banks, is a sophisticated and advanced model for the industry, bringing multi-lateral optimisation to the next level by including a clearing node.”
James Pearson, head of LCH ForexClear, says: “Through this initiative, more market participants can benefit from FX Smart Clearing, enabling capital and funding requirement benefits under SA-CCR.
“FX Smart Clearing is another tool we are providing for banks to financially optimise their resources, unlock capital constraints and help to ensure a safe and efficient financial system.”
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