Welcome to the eleventh Spotlight of our Ashurst FinTech Spotlight series, where we are covering FinTech companies that were part of our FinTech Legal Labs Cohort and other promising FinTech companies.
We are delighted to introduce Kynec Ltd as a spotlighted company in this series. If you are interested in suggesting a company to be covered under this series, or are interested in meeting or finding out more about any of the companies we are featuring as part of this series please do not hesitate to contact us.
Kynec Ltd - About the Company
New regulations following the Great Financial Crisis, and technology innovation, are disrupting the OTC derivatives market.
Kynec brings a new platform business model to the ‘Margin Marketplace’ by connecting firms, through its Rubicon platform, to multiple trading venues, CCPs and an emerging network of service providers.
Rubicon manages pre- and post-trade margin workflow for direct clearing, client clearing and margin consolidation across OTC cleared, Listed and bilateral OTC markets. Service providers bring value through their specialist offering eg analytics, settlement and gain value from easy access to more clients.
The company has validated its Rubicon platform solution with both banks and service providers, and now seeks funding to build a production platform and onboard clients.
Kynec is targeting £30m annual revenues within 5 years. This builds the foundation for disrupting the $1 trillion margin marketplace to extract significant new revenues and efficiencies.
Key Advantages
- Firmwide view of all margin positions across OTC Cleared, Listed and Bilateral OTC enabling firms to reduce margin funding costs and fees, manage CCP and broker risks, and improve operational efficiency
- Low cost flexible clearing infrastructure to support direct clearing across multiple CCPs and products
- Client clearing managed service to enable more firms to earn fee income and additional client revenues from margin financing and collateral transformation
- Service Providers gain fast and efficient access to all member firms through a single connection and procurement process
- Cloud hosted scalable implementation with integrated IT Risk information security monitoring
- Subscription fee based on usage with Service Providers paying a share of their platform revenues
- Platformification: Clients, CCPs and Service Providers connect to each other, create and exchange value at Kynec’s Margin Marketplace
Ashurst LLP does not endorse or recommend any product or an investment in any company or product.
VIEW PROFILEPartner, Chief Digital Officer, Head of Ashurst Advance DigitalLondon+44 20 7859 2755
