Societe Generale is now the first prime broker to offer full straight-through processing (STP) of FX options novations, leveraging an expanded solution developed in partnership with financial technology company Capitolis.
Societe Generale engaged Capitolis to develop a fully automated solution that would enable its clients to novate FX options within its network without requiring manual intervention. Collaborating with Societe Generale, Capitolis delivered this solution through its Novations platform, which automates a process traditionally handled manually, thereby increasing speed and reducing operational requirements. The Capitolis platform processes the novations and then interfaces with Societe Generale’s TRM system.
The solution is currently live on the Capitolis Novations platform and is available for other banks seeking full STP processes for FX options novations.
Ben Tobin, Co-Head of Market Development for Portfolio Optimization at Capitolis, commented, “Capitolis is proud to offer Societe Generale Prime Brokerage a fully STP solution. We are grateful to Societe Generale for bringing together all parties, and it has been great to get this over the line as we welcome our first asset manager on the Capitolis Novations platform.”
Luke White, Head of Foreign Exchange Prime Brokerage, EMEA & APAC, Societe Generale, stated, “Once again, Societe Generale builds on its well-earned reputation for financial innovation by bridging a critical gap between the two market dominant players in the upstream and midstream world of trade processing. This solution delivers a more efficient netted portfolio of exposures, helping both clients and banks recycle credit, reduce leverage, and boost trading efficiency.”
The Capitolis Novations platform, which the company states is the only FX novation platform on the market, aims to enhance efficiencies, safely expand execution opportunities within the FX market, and further reduce its risk and capital footprint. This implementation of straight-through processing for FX option novations marks an advancement in automation within the financial industry.
