Reduces $341 billion in SA-CCR Effective Notional across global bank network in record-breaking 26^th multilateral optimization run

Capitolis, the technology company helping to create safer and more vibrant capital markets, has gained significant momentum in its Portfolio Optimization business in the first half of 2023. The company’s latest optimization run drove a record reduction of $341 billion in SA-CCR (Standardized Approach for Counterparty Credit Risk) Effective Notional and included a record number of 20 entities. The run optimized for SA-CCR as well as additional objectives while being flexible to accommodate a multitude of constraints. As the Capitolis network continues to expand, both existing and new customers are seeing increased benefits from the network effect.

“We are very pleased with the momentum our Portfolio Optimization business continues to achieve. Our algorithms are constantly improving, and the results have been better than expected,” said Gil Mandelzis, CEO & Founder, Capitolis. “We entered 2023 with the goals of expanding the size of our participating network to drive more value for all participants, introducing innovation to further streamline the execution process, and launching additional optimization opportunities. Our latest run concentrated on SA-CCR and additional objectives, with record-breaking results and a record number of participants, is a further advancement toward these goals.”

The SA-CCR framework, which seeks to normalize and standardize the capital requirements on derivatives portfolios for financial institutions, has been phased in globally over the last few years to provide a uniform and standardized method by which financial institutions will be required to measure exposures and ultimately manage and capitalize against. Capitolis’ Portfolio Optimization exercises deliver significant reductions in exposures calculated under SA-CCR and additional objectives.

About Capitolis

We believe the financial markets can and should work for everyone. Capitolis is the technology company helping to create safer and more vibrant capital markets by unlocking capital constraints and enabling greater access to more diversified capital and investment opportunities. Rooted in advanced technology and deep financial expertise, Capitolis powers groundbreaking financial solutions that drive growth for global and regional banks – and institutional investors alike. Capitolis is backed by world class venture capital firms, including Canapi Ventures, 9Yards Capital, SVB Capital, Andreessen Horowitz (a16z), Index Ventures, Sequoia Capital, Spark Capital, and S Capital, as well as leading global banks such as J.P. Morgan, Citi and State Street.

Founded in 2017, our team brings decades of experience in launching successful startups, technology, and financial services. Capitolis was recently named to Fast Company’s prestigious annual list of The World’s Most Innovative Companies for 2023 as well as Crain's 2022 Best Places to Work in New York City list. For more information, please visit our website at www.capitolis.com or follow us on LinkedIn.

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