Sernova Financial

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Sernova Financial
Founded 2015
Key People Venkatesh Ramasamy, Executive Chairman and Co-Founder; Richard Thompson, Chief Operating Officer and Co-Founder
Products Clearing services through the cloud

Sernova Financial is a cloud-based clearing, collateral and risk management firm that provides access to clearing and post-trade services, with a focus on shared infrastructure for derivatives clearing, collateral and risk management.[1]

It covers asset classes that include: futures and options, equities and forex.[2]

History

Sernova's founders, Venkatesh Ramasamy and Richard Thompson, previously ran clearing for some of the top tier banks as well as at Calypso Technology. Both left Calypso to start Sernova in 2015 and recreate the infrastructure of a top tier bank that enables market participants to access clearing as direct members.

The pair started Sernova because of major shifts in financial markets, driven by new regulations and capital requirements after the 2008 financial crisis, that created problems for traditional client clearing models. Those capital requirements for large banks and clearing member firms forced them to trim clients from their exchange traded and OTC derivatives clearing operations. Sernova was designed to fill that void and help assist regional banks (or Tier 2 and Tier 3) and buy-side firms with the direct clearing membership infrastructure they need.[3]

The platform, launched on March 1, 2017 with FirstRand Securities Limited as their initial client, clearing through LCH SwapClear. It aimed to address the stricter capital and intra-day funding requirements and leverage ratio considerations of regulations such as EMIR, Dodd-Frank, MiFID II and Basel III. [4]

In July 2017, Calypso Technology announced a minority stake in the firm.[5]

Products and Services

DirectLINK enables market participants to transition from client to self-clearing or expand and enhance existing memberships.

InterLINK enables regional market participants to exploit revenue opportunities by offering client clearing services.

EndLINK provides end users with seamless integration across multiple models.[6]

Key People

References

  1. Sernova About. Sernova Financial.
  2. Introducing Sernova. Sernova Financial.
  3. Sernova About. Sernova Financial.
  4. {{cite web}url=http://www.newswire.ca/news-releases/new-capital-markets-cloud-based-utility-sernova-launches-with-first-client-615062234.html%7Cname=New Capital Markets Cloud-based Utility, Sernova, Launches With First Client|org=Cision Newswire|date=July 12, 2017}}
  5. {{cite web}url=http://www.prnewswire.com/news-releases/calypso-acquires-stake-in-sernova-financial-300492692.html%7Cname=Calypso Acquires Stake in Sernova Financial|org=PR Newswire|date=July 24, 2017}}
  6. Asset Classes. Sernova Financial.