LMRKTS gets investment from International Finance Corp
The US fintech specialises in helping banks de-risk their currency derivatives portfolios.
The US fintech specialises in helping banks de-risk their currency derivatives portfolios.
New York-based fintech start-up LMRKTS has gained an equity investment from International Finance Corporation (IFC), part of the World Bank Group, to help its expansion into the emerging markets.
Founded in 2012, LMRKTS has developed a “compression service” used initially by major US banks to remove risk in their currency derivative portfolios through minimising counterparty risk and leverage costs.
After several years’ development, the service launched in late 2016 and balances participants’ counterparty limits and individual risk management objectives with a structured methodology to deliver mutually beneficial results. According to LMRKTS, it has already compressed over US$2 trillion of notional equivalent in foreign exchange (FX) derivatives.
“By reducing risk in local currencies and lowering the possible impact of one party’s failure on others, LMRKTS can foster liquidity and investment in emerging markets countries,” stated the company, which has also secured funding from private investment firm Motive Partners.
“With a core group of 10 of the largest investment banks signed as customers, we hope this partnership and investment with the IFC will help us grow beyond the New York Fed list of primary dealers and into other asset classes such as rates and into emerging market banks,” said Lucio Biase, chief executive officer (CEO) of LMRKTS.