OpenGamma, a financial technology company specializing in risk management solutions, secured a further round of funding to the tune of $13.3 million in a bid to better address increasing demand for its solutions which enable firms to optimize their activities and improve capital efficiency in the OTC markets.
The major bump came from the American venture capital firm Accel, formerly known as Accel Partners, and Euclid Opportunities, ICAP’s investment arm focused on emerging fintech companies. Investors in that round also included Cristóbal Conde which joined the OpenGamma board in 2014 as an independent non-executive director.
Including the new round, OpenGamma has now raised a total of nearly $30.0 million in funding.
Peter Rippon, newly-appointed CEO of OpenGamma, said: “We’ve demonstrated that we are an innovative and effective developer of technology solutions for the financial community. Investment now lets us build from these solid foundations to become a world-class partner and provider of benchmark industry solutions.”
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The company runs some of the most popular derivatives risk analytics solutions which cater to over-the-counter (OTC) or privately-negotiated derivatives contracts, a $493 trillion marketplace as of end-2015, according to the BIS.
OpenGamma distinguishes itself from other major providers with a software-as-a-service (SaaS) approach which is based on an open source library of standardized derivatives pricing and risk models. The hosted service provides access to margin analysis with no overhead required for data integration or local software deployment.
In addition, OpenGamma solutions enable investors to compare OTC and ETD margin requirements across multiple CCPs including LCH, CME and EUREX. The offering rapidly gains traction since the accurate calculation of exposure and the ability to predict future margin cost has become a major consideration for all industry participants.
Bruce Golden, partner at Accel, commented: “While OpenGamma cut its teeth on open source software, they have embraced the broader shifts in technology. By focusing on delivering the best-in-class cloud-based, modular solutions for the financial markets, the firm is positioning itself to become the market standard for derivatives risk analytics.”
Jenny Knott, CEO of ICAP’s Post-Trade Risk and Information Division, added in an accompanying statement: “Our commitment to OpenGamma reflects our belief that the derivatives markets are embracing innovative solutions to address capital and operational challenges. It also aligns with our strategic focus on market structure that enables clients to optimize their regulatory and financial resources.”