Cinnober, a provider of exchange and real-time clearing technology to market operators, clearinghouses, banks, and brokers has opted to expand its business segmentation, culminating in the establishment of operations in a separate company, per a Cinnober statement.
The decision was reached by the Board of Cinnober, which opted to develop its sales business of real-time clearing technology and services to large international banks, i.e. client clearing. As such, Cinnober will be transferring select rights to its technology suite to a subsidiary, which will further commercialize the offering.
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In particular, the new subsidiary powered by Cinnober’s technology will cater to banks and their respective clientele, whereby utilizing its exchange and clearinghouses services to bolster risk management across several markets. The divergence of the technology to the new subsidiary is important as it will help enable more efficient use of capital, whereby bringing improved operational efficiencies.
In terms of leadership, the board of the new subsidiary will be composed of Veronica Augustsson and Thomas Bendixen, each of whom are the respective CEO and General Counsel of Cinnober’s parent company – furthermore, Board Member of the parent company Patrik Enblad will be appointed as Chairman of the new subsidiary.
“The new subsidiary will operate as a separate entity with its own employees and its first mission is to develop and refine the business plan. I look forward to contributing actively to the task of taking a world-leading technology – one that has already proven itself in the exchange technology business – to the banking industry. Much of the groundwork has been done, although some further development and customization may be needed. An important task now is to recruit a CEO with the ability to capture this opportunity and take this offering to the market,” explained Mr. Enblad, the subsidiary’s Chairman.