Capitolis

Capitolis is a financial technology company founded in 2016 and headquartered in New York City, with a significant presence in London. It builds software that addresses a structural problem in capital markets: the balance-sheet cost of trading. Banks and other market participants must hold regulatory capital and collateral against large, complex portfolios of derivatives and securities financing trades, and much of that capital is consumed by offsetting or redundant exposures. Capitolis' platform uses optimization and network technology to identify offsetting positions across institutions, allowing participants to reduce gross exposures, free up capital and collateral, and improve funding efficiency without changing their underlying economic positions. The company's core offering is a portfolio optimization and capital-efficiency platform used by sell-side banks, buy-side asset managers and other financial institutions. Its products cover areas such as foreign exchange (FX) and interest-rate derivatives optimization, securities financing and collateral optimization, and a network-based service that matches offsetting trades among participating institutions. Capitolis has also expanded into solutions aimed at reducing settlement and counterparty risk, and into services that help clients manage regulatory capital requirements and balance-sheet constraints. Capitolis is a private company backed by venture capital and strategic investors. It has raised multiple funding rounds from investors including venture firms and bank-affiliated strategic investors, reflecting the fact that its customer base is largely the banking industry itself. The company is led by founder and CEO Gil Mandelzis, a former financial-markets executive. Its customer base spans major global banks and asset managers, and its business model is primarily enterprise software and network services sold to financial institutions. In the market, Capitolis positions itself at the intersection of financial technology and capital-markets infrastructure, competing with in-house bank optimization efforts and other fintech providers of post-trade and capital-efficiency tools. Its pitch is that a shared network across institutions produces better optimization outcomes than any single bank can achieve alone, and that this reduces systemic risk while lowering costs for participants. The company has been recognized as a growth-stage fintech in the capital-markets technology space.

Capitolis was founded in 2016 by Gil Mandelzis, a financial-markets executive, with the aim of tackling the capital and collateral inefficiencies that weigh on banks' trading businesses. The founding premise was that banks individually hold large gross exposures that partly offset each other across the market, and that a shared optimization network could reduce those exposures for all participants, freeing regulatory capital and collateral. The company built a technology platform that ingests trade portfolios from participating institutions and runs optimization algorithms to identify offsetting positions, then executes the resulting reductions through a network of counterparties. Early use cases centered on foreign exchange and interest-rate derivatives, where notional volumes are large and capital consumption is significant, and on securities financing and collateral management. Capitolis grew by signing major global banks as clients and network participants, and it raised venture funding from investors including venture capital firms and strategic investors tied to the banking industry. Over time it broadened its product set from pure optimization toward adjacent problems such as settlement risk, counterparty risk and balance-sheet management, positioning itself as a capital-markets infrastructure provider rather than a single-purpose tool. The company maintains operations in New York and London, reflecting the two main centers of global capital-markets trading. It remains a private, venture-backed company and continues to market its network and optimization services to banks and asset managers worldwide.

• 2016

  Capitolis founded by Gil Mandelzis.

• Launched portfolio optimization platform for FX and interest-rate derivatives and securities financing.

• Expanded network of participating global banks and asset managers.

Enterprise fintech platform for capital-markets capital, funding and collateral optimization, sold to banks and asset managers.

• Capital-efficiency and portfolio optimization platform

  Software that analyzes trade portfolios and identifies offsetting exposures to reduce capital and collateral consumption.

• Cross-institution offsetting network

  A network service that matches offsetting trades among participating institutions.

1. 1Capitolis official websitecapitolis.com
2. 2Capitolis Appoints Industry Veteran and Market Structure Thought Leader Stuart Wexler as General Counsel Amid Continued Growthfinanznachrichten.de
3. 3Capitolis Appoints Jessica Zall Vice President of Marketingfinanznachrichten.de
4. 4Capitolis Secures Strategic Investment from Citi, J.P. Morgan and State Street, Cementing Industry Adoption of its Fast-Growing, Revolutionary Platformfinanznachrichten.de
5. 5Israeli fintech co Capitolis acquires LMRKTSen.globes.co.il