Citi and HSBC capitalise on Capitolis FX tech

Rue Irving

Citi and HSBC are the first FX prime brokers to go live on the Capitolis Novation service in foreign exchange.

HSBC and CIti onboard Capitolis tech

The two banks went live in December 2018. The project is aimed at streamlining the novation process, helping to reduce the time it takes for FX options novations to complete, and for the benefit of the sell and buy side.

Vincent Bonamy, global head of global intermediary services at HSBC, says: “The FX prime brokerage novation tool will provide access to liquidity and credit in the FX options market, while allowing clients to offset their positions across their network of banks.”

Gil Mandelzis, CEO of Capitolis, adds: “Citi and HSBC have used this service extensively across all their client activity, with executing banks and counterparties and for their proactive commitment to growing the community of participants across the buy and sell-side.”

Capitolis Novation, launched in May 2018, is a technology platform which automates the manual workflow in both FX prime broking and bilateral trading, partnering to provide capital efficiencies for the FX market.

The service intends to help reduce overall balance sheet notional and risk exposures that banks currently employ to meet their regulatory capital requirements.