Cinnober Financial Technology

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Cinnober Financial Technology
Cinnober logga red RGB .gif
Founded 1998
Headquarters Stockholm, Sweden
Key People Veronica Augustsson, CEO
Employees 250+
Products Exchange platforms, risk and clearing technology, market surveillance and compliance systems
Twitter @Cinnober
LinkedIn Profile
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Cinnober Financial Technology is an independent global provider of financial technology, primarily to exchanges and clearinghouses. Headquartered in Stockholm, the company focuses on developing trading and clearing technology, identifying new trading trends and assisting companies with evolving regulations.

The trading and clearing solution is based on Cinnober’s TRADExpress™ platform, which includes price discovery, order matching, market data, and market surveillance. Cinnnober's customers include major players in the financial industry such as: Australian Stock Exchange, Dubai Gold & Commodities Exchange, London Metal Exchange and Stock Exchange of Thailand.

As a provider of real-time clearing systems, Cinnober manages ongoing projects with: BM&FBOVESPA, Dubai Gold & Commodities Exchange (DGCX), the Japan Exchange Group (JPX), the Johannesburg Stock Exchange (JSE), and the London Metal Exchange's clearinghouse LME Clear. [1]

Cinnober also has developed technology platforms and solutions for Alpha Trading Systems (now (TMX Alpha), Borsa Italiana, Burgundy, Chicago Board Options Exchange, Deutsche Bank, Deutsche Börse, Quadriserv, and Turquoise.

Banks and brokers, focusing on trade reporting and client clearing operations, are included in Cinnober’s long-term strategy to broaden its customer base. Cinnober's subsidiary, Boat Services Ltd., provides a trade reporting service for OTC trades for large institutions. BOAT is partnered with the London Stock Exchange Group, offering a trade reporting service called TRADEcho for MiFID II-compliant reporting for firms.

Cinnober has more than 250 employees, with more than 30 nationalities represented, most of whom have a background in marketplaces and financial IT. Offices are located in Stockholm, Umeå, Sweden, London, and New York. Its shares are listed on the Nasdaq First North market in Stockholm.


The company was founded in 1998 by four former employees, with extensive experience of developing trading systems at e.g. OMX and Swedish bank SEB. They had earlier worked together during the 1980s at Digital Equipment Corporation and wanted to build a flexible and fast platform for financial transactions.

The four founders: Pär Bertilsson, Peter Lenti, Gunnar Mjöberg, and Gunnar Lindell, its first CEO, were joined by the present chairman of the board, Nils-Robert Persson, who is the largest stakeholder in the company. Mjöberg, Lenti, and Persson are still active in the company on a daily basis. Cinnober has steadily built up its business, primarily in the exchange and clearing space, by providing technology to a growing number of exchanges and marketplaces in trading, clearing, surveillance, and risk management. Today, all of Cinnober's solutions are based on its TRADExpress platform.

The Early Years

The company's early technology was focused largely on providing trading systems for exchanges. The American Stock Exchange (AMEX), became a customer in 2000 when it ordered a trading solution for the marketplaces’s specialists and market makers. Cinnober’s relationship with AMEX was further solidified in 2002 when the exchange extended its order for a complete electronic trading system, fully based on the TRADExpress technology. The same year, London Metal Exchange (LME) joined Cinnober’s growing customer base when it implemented its first version of the LME Select trading system, utilizing Cinnober's TRADExpress platform. [2] [3]

In July 2002, the company launched CScreen, a Java-based system for wholesale brokers and traders in the equity options market, which allowed participants to broadcast and negotiate prices in realtime. In April 2005, Cinnober sold CScreen Ltd., a subsidiary of the company, to Euronext.liffe, enabling that exchange to offer straight-through-processing, from pre-trade price discovery to post-trade booking and administration.[4] [5] [6]

Cinnober moved into the clearing space in 2005 when it provided the London International Financial Futures Exchange with the technology behind Liffe's Bclear, the first platform to handle processing and clearing of credit default swaps, which at the time were cleared through LCH.Clearnet. That relationship was extended in 2008 when Liffe, then part of NYSE Euronext, added commodities to the platform. [7]

In 2006, Cinnober purchased a 50 percent stake in Cinetics Ltd, allowing Cinnober to expand its product suite to include trading of non-standardized contracts. In March 2016, it also forged a deal with the Chicago Board Options Exchange, or CBOE, to provide the exchange with the first fully-automated electronic FLEX Options trading system in the U.S.[8] [9]

Cinnober Goes Global & Builds a BOAT

Cinnober expanded rapidly thereafter with several deals including Alpha Trading Systems, Turquoise, Quadriserv, Hong Kong Mercantile Exchange and Burgundy, a Nordic-based multilateral trading facility.

In 2007, Cinnober developed a pre-and post-trade reporting system for Project BOAT, the group of nine investment banks whose members overlap with Turquoise. The platform enabled firms to meet requirements for pre-trade and post-trade reporting obligations for European OTC equity trades. Those banks sold their stake to data vendor Markit in January 2008, which operated the equity trade reporting platform as Markit BOAT. Markit, which was set to close down the European trade reporting service, sold the entity in July 2014 to Cinnober, which saw value and demand for independent trade reporting. In 2015, the firm changed the name to BOAT Services Ltd. and implemented a long-term strategy to include international banks. The company offers the service to banks that are required to report OTC transactions beyond equities as a part of MIFID II. Cinnober partnered with the London Stock Exchange in September 2015 to offer a comprehensive, shared reporting service, which is based on MIFID II trade reporting requirements. [10][11][12][13][14]

In June 2016 Boat and the London Stock Exchange jointly launched TRADEcho, a pan-European trade reporting solution for all asset classes covered by MiFID II (including equities, fixed income, depository receipts, ETFs, derivatives and commodities). TRADEcho merge and enhance the two companies’ existing and complementary trade reporting services, and is operated as an "approved publication arrangement" (APA).[15][16]

In October of 2016 the London Bullion Market Association chose Boat (along with fintech firm Autilla) to deliver a trade reporting service in 2017 intended to improve transparency in the metal markets.[17]

In the fall of 2007, Cinnober and Turquoise signed an agreement for delivery of the Turquoise trading platform that covered both operation and hosting services. Turquoise, the multi-lateral trading facility (MTF) set up by nine major European investment banks, became a subsidiary of the London Stock Exchange Group in 2010. Along with the Turquoise deal, Cinnober also signed an agreement with Alpha Trading System, which was an ATS backed by several of the largest Canadian banks.

In November 2008, Alpha Trading Systems (now TMX Alpha) launched a new alternative trading platform for the Canadian securities market using Cinnober's TRADExpress platform. It upgraded the platform to a new trading system from Cinnober in March 2012.[18][19] Alpha’s collaboration with Cinnober was behind its win of 20-25 percent marketshare, which made it the most successful ATS at that time. It was eventually purchased by TMX in 2012 and renamed TMX Alpha.

In September 2008, Cinnober continued its growth, announcing two deals to build technology platforms for Burgundy, a trading facility for listed Nordic securities, and another separate deal with the Hong Kong Mercantile Exchange (HKMEx), which marked Cinnober's first move into Asia. [20][21]

Cinnober followed up those projects with the launch of a new securities lending platform for Quadriserv in October 2008 based on the TRADExpress technology. The platform, which was called Quadriserv AQS, was sold to PDQ in August 2015, provided automated and anonymous trade matching.

Market Surveillance, Risk Management, BM&FBOVESPA Clearing and Umeå

With its trading, clearing, and regulation technology established in the marketplaces, the company moved into the market surveillance area. This proved to be a good move, as it signed on numerous exchanges in the following years.

Cinnober broke into the market surveillance space with a partnership with Stockholm-based Scila in February 2009. The Java-based solution, called Scila Surveillance, was designed with standard connectivity technologies to make it easily adaptable to many exchange trading platforms. Cinnober also took a minority stake in Scila (around 28% shareholding) and the two companies created market surveillance systems for two exchanges, Hong Kong Mercantile Exchange and Burgundy, in the spring of 2009.

The partnership worked well, and they signed on two more firms in the coming months with the London Stock Exchange's derivatives platform EDX London and then Oslo Børs. LMAX, an MTF owned by Betfair, followed later in October 2010 and Deutsche Boerse's Xetra cash market and Eurex in January 2011. The company also sold the system as a European Union pilot project for monitoring wholesale energy markets and added the Qatar Exchange in March 2012 and the Hellenic Exchanges in Athens in May 2014. [22][23] [24][25] [26] [27]

Cinnober moved further into the clearing space with the April 2009 launch of a realtime clearing platform, which was, in part, a response to the credit crisis of 2008. Built on Cinnober's core technology, the TRADExpress RealTime Clearing platform was a pioneer in the industry as the first realtime clearinghouse solution, surpassing traditional clearing technology, which cleared and settled trades in batches twice a day, or at the end of each trading day. It also enabled users to calculate risk and margin in realtime or pre-trade, and could be applied to cash, derivatives, OTC or listed products.

This was followed closely by a joint-effort for the Stock Exchange of Thailand, or SET, in June 2011. The agreement concerned a completely new trading infrastructure, including new trading systems for both equities and derivatives markets, with features for market data dissemination, index calculations and effective market surveillance. [28]

Cinnober then announced a comprehensive deal with the Dubai Gold & Commodities Exchange to provide trading, clearing, and market surveillance for the exchange. The new system was launched in March 2013.

The company scored a major deal with BM&FBOVESPA in November 2011, providing the Brazilian exchange with a new multi-asset clearing system and integrating the exchange's four clearinghouses into one single platform. Essentially, the clearinghouse will handle all of BM&FBOVESPA's business units: equities and corporate bonds, derivatives, spot FX and government bonds. The first phase, which focused on the clearing derivatives, was launched in August 2014. [29] [30][31][32][33][34][35]

In 2011, the London Metal Exchange decided to self-clear, and in 2012 the exchange appointed Cinnober as its technology partner to build its clearinghouse, LME Clear. The new clearing solution LMEmercury, which included core technology for real-time, multi-asset clearing and risk management, went live in September 2014.

In May, 2012, Cinnober announced the acquisition of Nomura’s Swedish technology development organization in Umeå, Sweden. The deal included 40 specialists in developing equity trading applications and platforms. [36]

About 60 employees work at the office. Activities include a one-year trainee program, cinCube, that focuses on financial IT, and the creative hub Cinnober Labs, where technology experts – in collaboration with the academic community – have the opportunity to visualize and test their ideas. Cinnober has also collaborated with Umeå University and Umeå municipality to establish a degree program in financial IT.

The company added NYSE Group to its list of surveillance technology customers in October 2014, providing the system to monitor NYSE's three equity exchanges and two equity options markets. In another deal, it agreed to provide a trade validation and confirmation solution to Euronext in the spring of 2015. [37] [38]

In 2015, the pan-European exchange group Euronext launched AtomX, a derivatives trading service that allows users to customize and trade options and futures and clear them through LCH Clearnet, in the same clearing pool as the rest of Euronext's derivatives positions. The solution is built on Cinnober’s TRADExpress technology.[39]

Big Deals in APAC

Cinnober posted two major deals with agreements to provide technology to the Australian Securities Exchange (ASX) in 2015 and the Japan Exchange Group (JPX) in 2016.

In February 2015, the Australian Securities Exchange (ASX) selected Cinnober for a major upgrade to its trading technology in which Cinnober’s TRADExpress Trading System will serve as ASX’s equities and derivatives trading systems.[40] [41]

In February 2016, Cinnober announced another major deal to provide clearing technology to the Japan Exchange Group for its listed derivatives market, which is operated by the Osaka Exchange (OSE) and cleared by the Japan Securities Clearing Corporation (JSCC). [42][43]

Cinnober also moved into the cryptocurrency and blockchain space in May 2015 as a partner in CRYEX, a digital currency exchange, regulated by Swedish regulatory agencies.[44]

Products and Services

All of Cinnober's technology solutions are based on its TRADExpress Platform. Each project is then tailored with specific technologies and customized functions which are layered on top of the platform. This technology structure allows it to build scalable, flexible, and fast systems for its clients.

Exchange Technology for Marketplaces and Clearinghouses

Cinnober’s traditional home turf is to offer business-critical and oftentimes tailored solutions for exchanges and clearinghouses, where the requirements on reliability and quality are immense. The company’s customers include many of the world’s largest marketplaces, and the technical solutions handle large amounts of transactions and market data in various asset classes, such as equities, bonds, commodities, and derivatives. In this market sector, Cinnober’s strategy is to offer solutions that cover all or part of the customer’s transaction chain, from price discovery, to matching, to clearing and settlement.

Solutions for Banks & Brokers

Cinnober has a stated strategy to broaden the target group. The company provides two service offerings to the banking and broker sector.

In 2014, Cinnober acquired the Boat reporting service from Markit, which offers its customers – major banks and brokers – the ability to report OTC trades in accordance with pan European regulations. Cinnober has provided the technology behind this service, based in London, since the beginning of 2007.

Cinnober also offers a client clearing service that provides straight-through processing, from trade capture to settlement. The multi-asset, real-time technology enables banks to integrate clearing flows, OTC and exchange traded, into one system. The system leverages technology Cinnober developed in it clearing solution for exchanges. The project also has received funding from the EU's Horizon 2020 research and innovation program.[45]

Managed Hosting Services

Cinnober offers hosted and fully managed services to clients, providing mission-critical, sophisticated financial transaction solutions.[46]

Key People


  • On December 9, 2015, LME Clear was granted “Best New Technology Product (Risk Management)” for LMEmercury – which run on Cinnober’s real-time clearing solution – at the FOW International Awards.
  • On December 9, 2015, the Stock Exchange of Thailand (SET) and its subsidiary TFEX received the “Best Technology Innovation by an Exchange” for its new trading infrastructure at the FOW International Awards.
  • On October 22, 2015, Cinnober was awarded “Post-Trade Initiative of the Year” for its TRADExpress RealTime Clearing technology at the annual Financial News Trading & Technology Awards.[47]
  • On April 28, 2015, Cinnober’s CEO Veronica Augustsson was designated as one of ‘Sweden’s most successful young female managers’ at “Future Women Leaders 2015” by the Swedish managers’ association Ledarna.
  • On September 26, 2013, Dubai Gold & Commodities Exchange (DGCX) received the FOW awards for both “Best Technology Innovation by an Exchange”, and “Emerging Exchange of the Year”.
  • On September 3, 2013, Veronica Augustsson was included in Financial News’ “40 Under 40 Rising Stars of Trading and Technology” list for the second consecutive year.
  • In March 6, 2013, Veronica Augustsson was named one of the most powerful 125 Swedish businesswoman in the annual list published by Swedish Magazine Veckans Affärer.


  1. Report from Cinnober's Annual General Meeting 2015. Cinnober.
  2. American Stock Exchange chooses Cinnober for new trading technology platform. Cinnober Press Release.
  3. LME appoints Cinnober org=Cinnober Press Release. {{{org}}}.
  4. Cinnober is pleased to announce the launch of CScreen. Cinnober Press Release.
  5. Euronext.Liffe buys CScreen. Cinnober Press Release.
  6. Cinnober Signs Three Major Contracts With Euronext.liffe. Bobsguide.
  7. Liffe to launch commodities on Bclear. Press Release.
  8. Press Release. Cinnober.
  9. Cinnober Acquires Full Ownership in Cinetics. Cinnober Press Release.
  10. Press release. Cinnober.
  11. Banks to Sell Stake in Boat to Markit. Reuters.
  12. Cinnober acquires BOAT from Markit — independent European trade reporting service is here to stay. Cinnober.
  13. Yearend Report - January 1, 2015 to December 31, 2015. Cinnober.
  14. LSEG and Boat Services to build MiFID II Trade Reporting solution. Cinnober.
  15. LSEG and Boat Services to build MiFID II Trade Reporting solution. Cinnober.
  16. LSEG and Boat Services launch TRADEcho – new multi-asset class MiFID II Trade Reporting solution. LSE.
  17. Cinnober's Boat cuts reporting deal with LBMA. FOW.
  18. Alpha Group confirms successful launch of Alternative Trading System org=Cinnober. {{{org}}}.
  19. Alpha launches new exchange based on Cinnober technology. Cinnober.
  20. Press release. BNet.
  21. Press release. Cinnober.
  22. Cinnober and Scila launch next generation market surveillance system. Cinnober.
  23. Press Release. Cinnober.
  24. Article. Wall Street & Technology.
  25. Press Release. Cinnober.
  26. Qatar Exchange goes live with Scila Surveillance. Cinnober.
  27. Athens stock exchange chooses multi-asset surveillance technology from Cinnober. Cinnober.
  28. SET goes live with new securities trading technology from Cinnober. Cinnober.
  29. Press Release. Cinnober.
  30. Cinnober takes on clearers with all-purpose system. Financial News.
  31. TradExpress RealTime Clearing contract. Finextra.
  32. Major Brazilian clearing project gathering momentum and attentiont. Cinnober.
  33. World’s largest clearing project goes live in Brazil. Cinnober.
  34. Brazil: Cleared for take off. Automated Trader.
  35. Brazil: Cleared for take off. FT.
  36. Cinnober acquires Nomura’s Swedish technology development centre. Cinnober.
  37. Cinnober chosen by NYSE Regulation as technology provider. Cinnober.
  38. Euronext expands derivatives services using Cinnober’s technology. Cinnober.
  39. Euronext launches AtomX. Euronext Press Release.
  40. Cinnober to provide ASX with new trading system. Cinnober.
  41. Australian Exchange launches technology overhaul. The Financial Times.
  42. Japan Exchange Group selects Cinnober’s real-time clearing for listed derivatives. Cinnober.
  43. Cinnober wins Japan Exchange derivatives clearing deal. FT.
  44. CRYEX to establish crypto currency exchange and clearinghouse using turnkey solutions from Cinnober. Cinnober.
  45. TRADExpress Client Clearing. Cinnober.
  46. Cinnober Managed Services. Cinnober.
  47. Cinnober’s real-time clearing technology awarded Post-Trade Initiative of the Year. Cinnober.