OTCX, the fast-growing over-the-counter derivatives platform, is delighted to announce that it has received backing from the Angel CoFund as part of its latest funding round.
The Angel CoFund is a £100m investment fund, supported by the British Business Bank, with objectives to back promising UK businesses and help develop the important business angel investment market.
In a market in which over 50% of OTC derivatives are traded via chat, email or voice technology, OTCX provides innovative solutions that help structure price discovery, negotiation and affirmation communication between counterparties. The investment by the Angel CoFund is further validation of OTCX’s technology and progress in bringing an antiquated OTC derivatives community into the 21st century.
The OTCX platform enables productivity and regulatory benefits to buy-side and sell-side firms. These include trade reconstruction and compliance with best execution policies under MIFID II, the regulation created to provide a safer, more transparent and evenly balanced marketplace as a whole. OTCX allows buy-side firms to digitalize their OTC derivative processes, especially for Interest Rate Derivatives that can be traded off venue as well as OTC equity derivative and structured products. The OTC derivative marketplace trades trillions of dollars of notional every day.
Nick Koechlin, the founder and CEO of OTCX, welcomed the new backing and added, “this investment allows us to accelerate our plans and to expand the reach of our existing offerings. Our clients are also very happy as we continue to remain independent and un-conflicted with other market participants, meaning that we can continue to implement solutions that work perfectly for all parties.”
“OTCX has developed a smart and sophisticated platform that enables greater efficiency and a better experience for all parties involved in the derivatives market,” said Tim Mills, Investment Director at the Angel CoFund. “It’s a clever and well-executed solution, and we’re pleased to announce this investment that will help the team to continue to deliver on their innovation.”
OTCX completed the investment from a syndicate of high-profile angel fintech investors, which included the Angel CoFund. As a result, Angel CoFund now holds a minority stake in OTCX.
About the Angel CoFund
Launched in 2011, the Angel CoFund is a privately managed and commercially focused institution that works alongside groups of business angels to invest in high potential SMEs across the UK, directly providing funding as well as encouraging the expansion and development of the business angel market.
Supported by the British Business Bank with funding from the Department of Business, Energy and Industrial Strategy, the £100m Angel CoFund is able to make initial investments of between £100,000 and £1 million into businesses, alongside syndicates of business angels.
To date the Angel CoFund has supported 78 companies (for example Ebury, Gousto, Crowd Vision and Hopster) providing over £37 million in direct investment alongside more than £185m from business angels and other investors, making it one of the most active early stage investors in the country.
The Angel CoFund is a long-term investor and, in aggregate, sets aside £1 of further capital for every £1 it invests. This model gives portfolio companies and co-investors the support they need to propel strong growth.
OTCX's independently owned multi-dealer Request for Quote platform is designed for the Buy Side and brings unrivalled performance and operational efficiency to the trading of vanilla and exotic OTC derivatives. OTCX benefits anyone looking for a smarter, more efficient way to manage their OTC trading. OTCX’s flexible trade capture and structured communication sets a new standard in operational performance, freeing buyers of OTC derivatives from a dependence on manual process and fragmented technology. OTCX has a fast-growing list of global clients spanning from Australia to North America.