Securities Financing Technology News | Exclusive: FinOptSys’ securities financing platform hits the market


FinOptSys, a new platform for optimizing financial resources, collateral and balance sheet, incorporating “true” peer-to-peer trading functionality, has come to market promising a “cradle to grave” offering that tackles a multitude of issues related to securities financing transactions. .

FinOptSys was established 18 months ago and recently completed the technological construction of its cloud-based software as a service platform, which currently has 30 independent modules, each responding to a market characteristic, including pensions and securities lending.

FinTech presents itself primarily as a provider of pre-trade analysis services that promises to highlight asset inefficiencies on a client’s balance sheet and suggest opportunities to adjust sub-optimal collateral baskets or reassess transactions, among several other functions.

The goal, according to FinOptSys, is to free human capital from the front-office of mundane administrative tasks and allow traders to focus on high-yielding technical opportunities, by arming them with intelligent, patent-pending quantitative algorithms.

A peer-to-peer module also allows users to negotiate legal contracts as well as negotiate transactions, with seamless connectivity to fulfillment and back office service providers of their choice.

The platform is currently in beta test with several customers.

FinTech was co-founded by Anand Krishnan and Divyesh Bhakta, who are co-CEOs.

Krishnan brings more than two decades of capital markets experience and most recently served as Head of Global Equity Funding for North America for Natixis.

Bhakta most recently served as Co-Head of Cross-Asset Funding Distribution at Bank of Montreal, where he worked with pension plans, insurance companies and global asset managers.

The FinOptSys masterpiece indicates that it was born out of customer demand for efficient, transparent, analytical and personalized solutions for the cross-use of assets, for the financial resources deployed in the global securities finance market.

According to its management, the platform is user independent and its plethora of treasury features alone can deliver significant cost savings to participating buyers and sellers.

FinOptSys is backed by John Stracquadanio and Kevin Felix, both of whom held senior positions at Scotiabank before leaving to form venture capital firm Appia Ventures.

Stracquadanio sits on the board of directors, while Felix sits on the FinOptSys advisory board alongside Gary Rupert, former CEO of Scotia Capital (USA), Gordon Clark, professor at St Edmund Hall, Oxford, and environmental expert, social and governance; and Diane Brokenshire, Global Head of Human Resources at Standard Chartered Bank, who brings her expertise in strengthening culture, diversity and inclusion.

They are joined by Art Certosimo, another industry titan, who currently sits on the boards of LTX, a Broadridge firm, and South Street Securities, an American brokerage firm.

FinOptSys recently closed its second fundraising round led by Appia Ventures, which was oversubscribed and caused it to increase its total fundraising by 40%.

Bhakta said potential investors were not only impressed with how quickly FinOptSys created a fully functional platform, but also with the comprehensive, modular and fully customizable nature of the offering.

FinOptSys also has a large pipeline of future modules slated for release in the medium term, including more data analytics and post-trade optimization services.


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