Bank of America and JP Morgan Chase have announced a $10 million investment in FinancialOxygen, a provider of capital markets software and trading marketplaces for US independent banks, thrifts and credit unions.
The two banks say they will also use FinancialOxygen technology to offer wholesale products such as federal funds, repurchase agreements, money market, fixed income, and mutual funds products through an online trading hub called BankOxygen. Lower-tier banks are already executing more than $1 billion a day in transactions using the platform.
"We believe in investing in companies that can improve the profitability of our business lines. FinancialOxygen's technology and trading platforms will clearly help us achieve that strategic objective by allowing us to reach independent banks and their customers," says Simon Lack, LabMorgan's credit, rates and equity e-strategist and managing director of e-markets, JP Morgan Chase.