Why Are FX Traders Shifting Their Attention to Capital Efficiency?


For firms to compete, they must optimize the amount of capital held in reserve against their FX trades. Capitolis CEO Gil Mandelzis and President Justin Klug recently spoke with Terry Flanagan from Markets Media about how technology can help institutional FX trading firms create trade and capital efficiency to drive better returns.

Mandelzis and Klug discuss how Capitolis’ suite of optimization tools gives financial institutions more control, with sophisticated algorithms that constantly scan for opportunity and the ability to seamlessly perform on-demand, real-time compressions, and novations. They also consider how new regulations, such as SA-CCR, which will adjust current models for measuring exposure at default for counterparty credit risk, might create more demand for compressing notional to optimize balance sheets.

To read the full article in Markets MediaCLICK HERE.

Written by:
Terry Flanagan
Markets Media

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