Swedish post-trade technology firm Cinnober is to move into new markets with the creation of a dedicated subsidiary to sell real-time clearing technology and service to large international banks.
Based on Cinnober’s existing technology for exchanges and clearinghouses, the new subsidiary will aim to provide banks and their customers with an immediate and complete view of risk exposure across different asset classes, both on- and off-exchange.
“After analysing the need for our solutions in real-time clearing, we are confident that the demand for improved post-trade technology among banks is substantial,” says Veronica Augustsson, CEO of Cinnober. “This technology arouses great interest since it can also streamline many sluggish processes that exist at major international banks and brokerages.”
An extension of the vendor's TRADExpress RealTime Clearing platform - initially developed for clearinghouses and CCPs - Cinnober won EUR2.5 million in funding from the European Commission in January 2015 to build a real-time risk margining, multi-asset clearing platform for the banking sector. The rights to this technology will now be transferred to the new business entity.
Cinnober board member Patrick Enblad has been appointed as chairman of the new unit. He says his first task will be to develop and refine the business plan.
"Much of the groundwork has been done, although some further development and customisation may be needed," he says. "An important task now is to recruit a CEO with the ability to capture this opportunity and take this offering to the market.”