The prime brokerage division of Societe Generale is offering a full straight-through processing (STP) of FX options novations following a new integration with fintech firm Capitolis. The launch aims to automate post-trade processing for FX options, reducing manual work and operational risk for institutional clients.
Full Automation for Prime Brokerage Clients
Capitolis has reportedly expanded its Novations platform to support full STP functionality, allowing trades to move automatically through Societe Generale’s transaction risk management system (TRM).
The solution enables the bank’s asset management client to novate FX options more efficiently, cutting operational workload and reducing settlement times. Capitolis said the service is now live and available to other banks looking to adopt a similar level of automation in their FX options workflows.
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“Capitolis is proud to offer Societe Generale Prime Brokerage a fully STP solution,” commented Ben Tobin, Co-Head of Market Development for Portfolio Optimization, Capitolis.
“We are grateful to Societe Generale for bringing together all parties, and it has been great to get this over the line as we welcome our first asset manager on the Capitolis Novations platform,” he shared.
Setting a New Standard in FX Post-Trade Processing
By introducing straight-through processing for FX option novations, Capitolis aims to help financial institutions expand execution opportunities while minimizing risk and capital usage. This new step marks a milestone for both firms as they continue to bring automation and operational efficiency into the heart of global FX markets.
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Meanwhile, Australia’s securities regulator recently fined Societe Generale Securities Australia $3.88 million for failing to prevent clients from placing potentially manipulative orders in electricity and wheat futures markets. The penalty was issued after the Markets Disciplinary Panel determined the firm breached market integrity rules.
According to the panel, two clients of the French bank’s Australian unit placed 33 suspicious trades between May 2023 and February 2024. These orders were designed to influence daily settlement prices near market close, a prohibited practice known as “marking the close.”
Societe Generale Securities was the second-largest participant in Australia’s ASX 24 futures market as of June 2023, accounting for almost 12% of total trading volume. The enforcement action comes amid increased regulatory scrutiny of commodities markets following price volatility triggered by global supply disruptions linked to the Russia-Ukraine conflict.
