Banks Invest In ECM Fintech
Capital Markets Gateway (CMG), a financial technology firm that is modernizing the equity capital markets (ECM), announced it received a strategic investment of $25 million from several financial firms including Barclays, Citi, Fidelity Investments, Goldman Sachs, J.P. Morgan, and Morgan Stanley as well as existing investors including Canaccord Genuity, Franklin Templeton, StageDotO, and Shea Ventures. The funding will be used to support the company’s growth and expand its solution to be the first ECM platform in the U.S. to provide digital connectivity between the buy-side and sell-side.
Capital raising remains a time-consuming and costly process for every constituent involved. CMG’s platform addresses an otherwise fragmented and inefficient process through a common solution that establishes a cohesive channel between equity capital markets participants, providing transparency into deal flow.
CMG has already grown to support nearly 100 buy-side firms representing $12 trillion in AUM and 15 investment banks. The company’s current customers benefit from actionable intelligence through its existing products like DataLab – which currently includes streamlined workflow tools, real-time data, and analytics. Now, with strategic partners from the sell-side, the company will launch new platform functionality to create greater efficiencies for the ECM capital formation process.
“It’s clearer now more than ever in the current environment that the way we do business today demands modern, agile, accessible, and transparent solutions – no matter where your desk is and no matter where your team members and partners are,” said Greg Ingram, CMG CEO and co-founder. “Companies access the capital markets to raise money that will ultimately drive expansion, innovation, and employment growth, which is why we have built an integrated capital markets platform that will optimize the deal flow process for all market participants. We are humbled by this tremendous validation from some of the top names in finance – all of whom share in our vision.”
Barclays has joined together with a group of leading global financial institutions to invest in Capital Markets Gateway @cmgxio, the first ECM platform in the U.S. to provide digital connectivity between the buy-side and sell-side.
— Barclays Investment Bank (@BarclaysIB) June 25, 2020
“CMG’s unique platform provides an efficient service in accessing the global capital markets,” said Todd Sandoz, Interim Co-Head of Global Equities at Barclays. “We have actively followed the company’s growth in recent years and are proud to support its mission to make transactions more efficient and less resource-intensive for the industry and for our clients. We look forward to its continued innovation in the space.”
“As significant technological innovations continue to be implemented across many facets of Wall Street, we are delighted that CMG is bringing much needed enhancement to the ECM capital formation process. A more efficient market translates to more business getting done – business that results in job creation, innovation, and economic growth,” said Ben Batory, SVP, Equity Trading at Franklin Templeton.
“Vanguard is dedicated to advocating for investors by providing innovative, world-class solutions that help advance the financial services industry,” said Warren Pennington, Principal, Head of Vanguard Fintech Ventures. “As a strategic partner of CMG’s, we are looking forward to working to improve the current capital markets infrastructure and provide better outcomes for investors.”
The acquisition of Lombard Forte Securities reflects a product and geographic expansion.
UBI Banca has gone live as a market maker on MTS Cash, initially for Italian Government securities.
2020 has been a record-breaking year for FXSpotStream.
Businesses and economies are rebuilding in a more sustainable way post-COVID-19.
Nearly $200bn of sustainable bonds came to market in the first half of this year.