19 July 2018
Visit www.avoka.com

Cinnober plans Skr100 million share issue to finance new real-time clearing business

22 February 2017  |  3568 views  |  0 Source: Cinnober

Today, after the close of the exchange, Cinnober Financial Technology Aktiebolag (publ) (“Cinnober”) will publish its year-end report for 2016.

As announced on November 9, 2016, Cinnober has resolved to increase its focus on sales of technology and services for real-time clearing for banks, so-called client clearing, through a separate subsidiary for these operations (the “Subsidiary”). Cinnober now intends to raise capital for this initiative by investigating the possibility for a directed share issue of approximately SEK 100 million and using this capital to invest in the Subsidiary.

Based on Cinnober’s existing technology for exchanges and clearinghouses, the Subsidiary will offer banks and their customers real-time clearing. This includes a complete overview of their risk exposure to different markets in real time. Because the technology is able to handle all of the asset classes traded as well as trade being conducted both within and outside an exchange, it facilitates more efficient use of capital and provides operational efficiencies. In 2016, the basic technology was named “Post-Trade Initiative of the Year” for the second consecutive year by the prestigious trade magazine Financial News.

The planned capital raising enables the financing of the planned expansion and the build-out of the client clearing offering. Given that the business develops well, the intention is for the subsidiary to be distributed to the shareholders of Cinnober within 24 months.

“Client clearing is a highly attractive growth initiative. The proposed financing arrangement will be used to commercialize the opportunity we perceive in the market,” says Veronica Augustsson, CEO of Cinnober and member of the Board of Directors of the Subsidiary. “We are the dominant supplier to international exchanges and clearinghouses when it comes to this type of technology. Interest in real-time technology from international banks and brokerages is very extensive, and there is currently substantial potential for modernizing and streamlining processes in areas such as risk management and post-trade. The next generation of banks will be very different from today’s banks, with the change being driven by modern technology.”

“We perceive considerable demand for solutions of this kind among the banks, not least because of new regulatory requirements, efficiency demands and the willingness to develop operations,” says Patrik Enblad, member of the Board of Directors of Cinnober and Chairman of the Subsidiary. “The level of ambition is high. We will be a key player in the introduction of the next generation of middle and back office systems for the increasingly digitized banks of the future. Aided by the financing of the initiative, the plan now is to recruit some 50 employees by year-end.”

Comments: (0)

Comment on this story (membership required)

Related company news


Related blogs

Create a blog about this story (membership required)
Visit info.nice.comVisit https://secure.vasco.comVisit http://go.jumio.com/finextraAd

Top topics

Most viewed Most shared
Calmejane quits Lloyds Bank to join SocGenCalmejane quits Lloyds Bank to join SocGen
11728 views comments | 5 tweets | 7 linkedin
Metro Bank opens developer portalMetro Bank opens developer portal
10033 views comments | 5 tweets | 14 linkedin
Anything Visa can do...Mastercard takes time outAnything Visa can do...Mastercard takes ti...
9686 views comments | 6 tweets | 15 linkedin
Mastercard enlists Worldpay to push Vocalink's Pay by Bank appMastercard enlists Worldpay to push Vocali...
9229 views 19 comments | 14 tweets | 30 linkedin
Hong Kong plans September go-live for blockchain-based trade financeHong Kong plans September go-live for bloc...
8988 views comments | 9 tweets | 17 linkedin

Featured job

Competitive base, double ote, benefits
New York City, NY - USA

Find your next job