Capitolis Connects to LCH ForexClear's FX Smart Clearing Solution to Optimize FX Markets

Capitolis, the technology company reimagining capital markets, announced its connection to LCH's FX Smart Clearing solution, in order to help banks overcome the challenge of increased costs resulting from the introduction of the Standardized Approach to Counterparty Credit Risk (SA-CCR) and other risk measures in the FX industry, particularly relating to FX forwards, FX swaps and cross-currency swaps.

Through the partnership with LCH ForexClear, part of London Stock Exchange Group's post trade division, Capitolis' innovative post-trade optimization technology helps find the optimum capital and funding state between cleared and uncleared markets by moving optimized trades where they best fit.

Gil Mandelzis, CEO & Founder at Capitolis, said: "Combining FX Smart Clearing with our post-trade optimization 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 optimization to the next level by including a clearing node."

James Pearson, Head of LCH ForexClear, added: "We are pleased to work with Capitolis. 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 optimize their resources, unlock capital constraints and help to ensure a safe and efficient financial system."

In the first half of last year, Capitolis raised $110 million in its Series D​ at a $1.6 billion valuation. Its investors include several leading financial and fintech investors, such as Canapi Ventures, 9Yards Capital, SVB Capital, a16z, Sequoia Capital, Citi, State Street, and JPMorgan Chase.