Calypso Technology Inc., a provider of capital markets and investment management software, today acquired a minority stake in the capital of Sernova Financial, a provider of cloud-based clearing and post trade services.
All proceeds from the transaction will be retained by Sernova Financial to expand the platform’s capabilities and further strengthen alignment with its investors. Terms of the transaction were not disclosed.
Sernova Financial’s cloud-based clearing service is already available on the Calypso platform, with business process services that re-create the shared infrastructure and service elements of traditional clearing brokers and counterparties.
The new tie-up combines Sernova’s capital markets expertise and the Calypso platform’s capability of cutting transaction costs and providing optimal workflows. Sernova’s offering also aims to reduce the barriers to centralised clearing for regional banks and investment managers.
Calypso has recently launched a Cloud Services Division featuring a comprehensive lineup of cloud solutions and enterprise apps, simplifying regulatory compliance.
Pascal Xatart, CEO of Calypso Technology, commented: “Calypso seeks to make the financial markets really work on Cloud. Our investment and partnership with Sernova Financial will broaden the markets we serve by providing the industry with a turnkey cloud-based solution to access the Centralised Clearing Counterparties (CCPs) network.”
Venkatesh Ramasamy, Chairman and co-founder of Sernova Financial, added: “Calypso entry into our capital strengthens our technical and commercial partnership with a recognised industry leader. Regulatory hurdles have reduced the number of clearing brokers and increased the cost of their services. Providing unrivalled cost and operational efficiency, Sernova needed to expand its product coverage to address a soaring demand”.