Calypso Technology, a leading provider of capital markets and investment management software, has acquired a minority stake in Sernova Financial, a twoyear-old startup that provides cloud-based clearing and post-trade services.
Sernova is aiming to fill the gap in the clearing market created by the cost pressures on clearing brokers due to new capital and liquidity requirements. The company says its post-trade solution "recreates the infrastructure of a traditional clearing broker in the cloud" and reduces the barriers to entry for clearing. Its platform supports both listed and OTC derivatives and can handle a wide range of account structures, including both net and gross omnibus, individual segregation, and sponsored principal.
Venkatesh Ramasamy, the executive chairman and co-founder of Sernova Financial, said the investment from Calypso will help his company expand its product coverage and address "soaring demand" for its services. "Regulatory hurdles have reduced the number of clearing brokers and increased the cost of their services," he explained.
The two companies were already closely connected before Calypso decided to buy a stake in Sernova. The start-up's cofounders worked together at Calypso before striking out on their own, and Sernova relies on technology provided by Calypso.