Capitolis Grows Network to 70% of Largest Banks

Shanny Basar
Banks Look to Compress Swaps

Capitolis, the technology company reimagining financial markets, has gained strong momentum by doubling the number of banks taking part in its Standardized Approach for Counterparty Credit Risk (SA-CCR) runs since the beginning of 2022.

Capitolis has maintained a frequent cadence of compression runs, helping this strong network of global banks reduce over $1.4 trillion in SA-CCR effective notional since the beginning of the year. Capitolis’ momentum was apparent in its recent SA-CCR run which provided clients five times the effective notional benefit than they received in the first run. The network continues to expand and both existing and new clients are seeing increased benefits from the network effect.

After a strong first half of the year, Capitolis was named “Best Compression/Optimization Service for FX” at the June 2022 FX Markets e-FX Awards, which seeks to recognize firms that have set the bar in electronic foreign exchange trading with skill, dedication, and creativity.

“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,” said Gil Mandelzis, CEO & 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.”

The new SA-CCR framework, the primary capital and leverage measure for much of the financial industry, has been phased in globally over the last few years to provide a single, standardized method by which financial institutions will be required to measure exposures and ultimately manage and capitalize against. Capitolis’ optimization exercises are delivering significant reductions in exposures calculated under SA-CCR.

“Capitolis has been a trusted partner helping us appropriately manage our regulatory requirements and free up capital through our portfolio optimization runs with them,” said Tobias Krause, Senior Managing Director, State Street.

Capitolis’ focus for the remainder of the year is on introducing new innovations to enhance its offering, with the goal of expanding its network of participants. Advances to algorithms will drive better benefits for existing and new clients under SA-CCR.

Source: Capitolis

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