Cinnober Expands Investment in Real-Time Clearing For Banks

Cinnober Expands Investment in Real-Time Clearing For Banks
09.11.2016 07:30 am

Cinnober Expands Investment in Real-Time Clearing For Banks

Banking

The Board of Cinnober has decided to further develop its business area for sales of real-time clearing technology and services to large international banks, so-called client clearing. To focus fully on this venture, Cinnober will transfer the rights to this technology to a subsidiary, which will further commercialize the offering.

Based on Cinnober’s existing technology for exchanges and clearinghouses, the new subsidiary will provide banks and their customers with an immediate and complete view of risk exposure across different markets. Since the technology can handle all traded asset classes, as well as trades that take place both on and off an exchange, it enables more efficient use of capital and brings operational efficiencies. For the second consecutive year, the underlying technology was recently named as Post-Trade Initiative of the Year by the well-renowned Financial News.

“After analyzing the need for our solutions in real-time clearing, we are confident that the demand for improved post-trade technology among banks is substantial. For several reasons, focus in particular, now is the right time to form a separate company for this,” says Veronica Augustsson, CEO of Cinnober. “We introduced real-time clearing to the exchange world and have been the predominant supplier to the largest trading and clearinghouses over the past five years. This technology arouses great interest since it can also streamline many sluggish processes that exist at major international banks and brokerages.”

The board of the new subsidiary will consist of Veronica Augustsson and Thomas Bendixen, who are the CEO and General Counsel of the parent company respectively, and Board Member of the parent company Patrik Enblad, who is appointed Chairman of the new subsidiary.

“The new subsidiary will operate as a separate entity with its own employees and its first mission is to develop and refine the business plan,” says Patrik Enblad. “I look forward to contributing actively to the task of taking a world-leading technology – one that has already proven itself in the exchange technology business – to the banking industry. Much of the groundwork has been done, although some further development and customization may be needed. An important task now is to recruit a CEO with the ability to capture this opportunity and take this offering to the market.”

The European Commission decided in early 2015 to include Cinnober’s initial venture for real-time clearing for banks in a financing program with the ambition of promoting European innovation. Cinnober has received partial funding of the development of this technology and now assesses the potential for the offering as so great that the operations should be run by a separate company.

Related News

ClearBank Becomes First Clearing Bank to Offer Multi-Currency Bank Accounts via API

ClearBank, the cloud-based clearing bank, has become the first clearing bank to offer multi-... Read more »

Paymentology and Thought Machine Collaborate to Create Digital Banking Platform

Paymentology, the UK cloud-native payment processor, is partnering with digital banking platform Thought Machine, to bring rapid integration... Read more »

Commerzbank Issues the Second Own Green Bond €500 Million Worth

Commerzbank AG has today very successfully issued another Green Bond with an issuance volume of €500 million. It is the Bank’s second own Green Bond after the... Read more »

FT Survey: 78% Say UK Banks Have “Surprised Themselves” With Their Adaptability During COVID-19

Appian (NASDAQ: APPN) today published survey results examining the response of the UK banking sector to the coronavirus pandemic, revealing that nearly three-... Read more »

Saudi Arabian Fintech Hakbah Joins Visa’s Fintech Fast Track Program

Hakbah, an alternative financial saving platform based in Riyadh, Saudi Arabia, today announced that it has joined Visa’s Fintech Fast Track... Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel