Baymarkets splits into RegTech & clearing businesses

Baymarkets, a Swedish financial markets software solutions provider, is splitting its business into two.

The Nordic FinTech firm will split, with one half of the business focusing on RegTech and the other pushing a clearing platform.

The new RegTech Solutions business is being set up by three Baymarkets founders, along with CEO Per Andersson, and will focus on legal and regulatory compliance technology for the FS industry. Reg&Tech will leverage Big Data automation to address the regulatory challenges facing financial institutions around the globe.

“The financial markets are rapidly becoming fully electronic, driven by regulations and new enabling technologies. There is a strong demand for solutions and platforms that automate and streamline the business processes to comply with these new regulations as well as to increase operational efficiency,” said Andersson.

Baymarkets will continue to focus on providing clearing solutions, particularly through its Clara platform. It will be led by Tore Klevenberg, as CEO, and Peter Fredriksson as chairman.

Klevenberg added: “I’m looking forward to this new phase in the development of Baymarkets’ clearing and marketplace offering. The Clara platform has proven to be very efficient at addressing all the demands of a modern clearing solution.”
Clara provides real time margining, corporate action management for stock and derivatives, calculations of daily cash settlement for stock and index futures, calculation of trading, clearing and settlement fees, and cash settlement for derivatives and securities lending, among other features.

Last year, DPOrganizer, a Stockholm-based RegTech company, closed its Series A funding round on €3m to help businesses comply with GDPR. The company’s round was led by Nordic venture capital firm Industrifonden, with participation from Creades and existing investors. DPOrganizer offers a Saas tool that helps businesses map, visualize, report on and manage their personal data processing.

According to recent data by FinTech Global, the Global RegTech is continuing to grow, with over $500m invested in Q1 2018. Global RegTech investment doubled between Q1 and Q4 2017, reaching just under $420m at the end of last year. Funding over the past four quarters has been on an upward trajectory reaching $532.7m in Q1 2018, almost three times the amount raised in Q2 2017. Nearly 44% of the total capital invested in the RegTech sector in 2017 was raised in Q4, driven by an increase in later-stage deals.


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