Neo Capital Markets SV SA, an investment firm part of the NEO Group, revealed on Friday that it has been registered by the Spanish CNMV (Comisión Nacional del Mercado de Valores) as a regulated investment firm which is authorized to deal with foreign exchange (FX) derivatives.
The regulatory approval for Neo, a fintech firm, was secured on November 23, 2018. It will allow a large range of hedging solutions to be digitalized for corporations.
Now, Neo is authorized to advise clients based in Europe on FX risk management. In addition, it is also able to offer FX trades execution from its proprietary platform which can be found at www.getneo.com.
Users of Neo will also have digital access to hedging instruments that are normally sold by banks. This includes FX forwards, swaps and options. The company will also offer pre-defined solutions, which will be accessible via API, such as budget hedging, foreign investment hedging and more.
2020 Global Market Outlook: How the “Known Unknowns” Can Affect CurrenciesGo to article >>
Neo is Now Considering FCA Regulatory Approval
Specifically, corporates will be able to hedge their risk over 90 currencies, the statement said. The company will operate in the United Kingdom, with the NEO Group headquartered in Spain. The firm is now weighing up its options to seek approval from the Financial Conduct Authority (FCA), depending on the outcome of Brexit.
Commenting on the development, Laurent Descout, the CEO & co-founder, said: “getting regulated for investment services is not just a significant milestone for Neo, but for the fintech industry in general.
“There are almost no independent investment firms in Europe and few are 100% FX B2B focused. We are proud to be one of the first fintech that is MiFID II compliant as it is a mark of safety for our clients. We are now in great shape to help corporate clients operating cross-border, through advisory and the automation of executing FX hedges.”
“Being able to access a large scope of instruments (forwards, swaps and options) is key to building turnkey solutions. We will also pursue our partnership policy with institutional clients searching digitalisation.”