OTCX, an over-the-counter derivatives platform, has secured backing from the Angel CoFund as part of its latest funding round.
The Angel CoFund is a GBP100 million investment fund, supported by the British Business Bank, with objectives to back promising UK businesses and help develop the important business angel investment market.
In a market in which over 50 per cent of OTC derivatives are traded via chat, email or voice technology, OTCX provides new solutions that help structure price discovery, negotiation and affirmation communication between counterparties. The investment by the Angel CoFund is further validation of OTCX’s technology and progress in bringing an antiquated OTC derivatives community into the 21st century.
The OTCX platform enables productivity and regulatory benefits to buy-side and sell-side firms. These include trade reconstruction and compliance with best execution policies under MIFID II, the regulation created to provide a safer, more transparent and evenly balanced marketplace as a whole. OTCX allows buy-side firms to digitalise their OTC derivative processes, especially for Interest Rate Derivatives that can be traded off venue as well as OTC equity derivative and structured products. The OTC derivative marketplace trades trillions of dollars of notional every day.
Nick Koechlin, the founder and CEO of OTCX, says: “This investment allows us to accelerate our plans and to expand the reach of our existing offerings. Our clients are also very happy as we continue to remain independent and un-conflicted with other market participants, meaning that we can continue to implement solutions that work perfectly for all parties.”
“OTCX has developed a smart and sophisticated platform that enables greater efficiency and a better experience for all parties involved in the derivatives market,” says Tim Mills (pictured), Investment Director at the Angel CoFund. “It’s a clever and well-executed solution, and we’re pleased to announce this investment that will help the team to continue to deliver on their innovation.”
OTCX completed the investment from a syndicate of high-profile angel fintech investors, which included the Angel CoFund. As a result, Angel CoFund now holds a minority stake in OTCX.
