Activity

Barclays, a multinational universal bank headquartered in London, has collaborated with Capitolis and Citadel to launch a new futures porting solution. Capitolis, a financial technology company, developed this innovative solution to streamline and automate the workflow for futures market participants. These participants include hedge funds, asset managers, other buy-side institutions, and Futures Commission Merchants (FCMs).
Key aspects of the new futures porting solution:
* Efficiency and Automation: The solution aims to automate the currently manual process of futures porting, making it faster and more efficient.
* Scalability: It is designed to add scalability for FCMs and the buy-side, allowing for greater management of financial resources.
* Transparency: The automated process increases transparency in position transfers.
* Capacity Increase: The solution helps in increasing the capacity for futures porting.
* Live Implementation: The first version of the Futures Porting solution is already live, with Citadel and other buy-side firms actively using it to facilitate position transfers with Barclays and other FCMs.
* Ongoing Development: Capitolis is working closely with the market to introduce additional functionalities to further simplify and standardize the workflow for both FCMs and buy-side participants.
Strategic Investment:
Alongside the launch of this solution, Barclays has also made a strategic investment in Capitolis, and a representative from Barclays has joined Capitolis’ board of directors.
Benefits highlighted by the involved parties:
* Capitolis: Emphasizes that the solution addresses the growing need for futures porting and expresses excitement about the rapid development and live implementation in collaboration with Barclays, Citadel, and other market participants.
* Barclays: Views Capitolis as a strong partner in driving industry enhancements across post-trade workflows.
* Citadel: Highlights that the solution empowers firms to mitigate operational risk while enhancing capital efficiency through the automation of the futures porting process, considering it a strategic advantage in today’s capital markets.
General Information about Futures Porting:
Futures porting is the process of transferring a client’s futures and options positions, along with the associated margin, from one Futures Commission Merchant (FCM) to another. This typically occurs when a client decides to change their brokerage service provider. The process can be complex and time-consuming as it often involves manual steps and coordination between multiple parties. An automated solution like the one developed by Capitolis aims to simplify and expedite this process, reducing operational risk and improving efficiency for all involved.

Video courtesy of IPO-VID In Patrick’s Opinion

Video courtesy of IPO-VID In Patrick’s Opinion