Capitolis, a technology company creating safer and more vibrant capital markets, announced it has successfully launched its fast-track Novations technology with the execution of a same day tear-up.
Reaching this milestone—the first of its kind in the FX options market—will significantly reduce the time and resources required by banks, prime brokers, and hedge funds in the approval process.
Novation tear-ups represent a meaningful amount of novations completed on the Capitolis platform and fast-tracking trades will bring a large benefit to the market. Previously, it took up to 10 days (T+10) to complete a tear-up largely due to the manual process involved to get the novations approved by the various parties. Capitolis believes that through improved technology and processes, up to 70% of all novations can be executed at T+1 or better.
