New York-based Droit Financial Technologies has secured $16 million from Goldman Sachs, Pivot Investment Partners and Wells Fargo with participation from DRW, a principal trading firm.
With the Series A minority investment, Droit will accelerate the deployment of its real-time decision-making engine, which provides point-of-execution compliance for sales and trading systems at a broad range of financial institutions.
The funds will be also be utilized to expand its operations globally, including the planned opening of an office in Singapore and a rapid expansion of the sales, support and marketing teams. Satya Pemmaraju, CEO of Droit says,
We’re delighted with the support received from our investors. They fully recognize the mandatory requirements of all trading firms to meet a vast, complex and constantly evolving array of global regulations and understand our business from the strategic perspectives of centralization, standardization, transparency and efficiency.
Founded in 2012, Droit is a financial technology company focused on providing enterprise solutions for over-the-counter (OTC) derivative trading processes. Its mission is to offer clients robust, enterprise infrastructure facilitating compliant and optimal trading of derivatives across asset classes, regulators, CCP’s and execution platforms. It addresses the increasingly complex issue of regulatory compliance through its innovative platform, ADEPT.
The platform ensures that every transaction is executed across jurisdictional guidelines on a timely basis by producing thousands of automated trading decisions per second. Combining finance and computational law, ADEPT also makes sure that the clients are updated with regulations and market microstructure across their entities, counterparties and geographies.
Joanne Hannaford, Managing Director, Technology at Goldman Sachs, comments,
Goldman Sachs is pleased to be both a user of and investor in Droit. The company’s success in creating its ADEPT platform gives the company an excellent opportunity to become the industry standard for regulatory-compliant decision engines, and we look forward to our continued cooperation.
Droit has brought a growing list of global financial institutions on board since it first went live in February 2014. Starting with Dodd-Frank, the platform has implemented more than 12 global regulatory regimes, with a complete MIFID 2 solution available to clients later this year. All regulatory frameworks are unified and managed within a single infrastructural solution, transparently driving both pre-execution eligibility and post-execution compliance. Don Wilson, CEO of DRW, says,
With more complexity in global market regulation than ever before, Droit’s unique, leading-edge platform automates and standardizes regulatory compliant decision-making, and plays a critical role for market participants.
The firm, which currently operates in New York and London, was founded by a team of veteran derivative traders, quants, e-commerce specialists, and technologists with front-line experience and expertise with products, markets, regulations and systems.