The Japan Exchange Group (JPX) has bought a minority stake in OpenGamma, providing $1 million in funding in return.
Established in 2009 and headquartered in London, OpenGamma is a technology company that is in the business of providing analytics and risk management solutions to financial institutions, including global CCPs and banks.
The firm develops software for the financial services industry, providing solutions to address the needs of over-the-counter (OTC) or privately-negotiated derivatives contracts. It witnessed its most recent funding round, a Series D, in October of last year, where it raked in $13.3 million, managing to attract investments from the likes of Accel Partners and ICAP.
OpenGamma’s other funding rounds include a $2.15 million Series A in 2009, a $6 million Series B in 2011 and a $15 million Series C round in August 2012, bringing its total funding raised to $39.2 million to date.
This most recent round of funding paves the way for OpenGamma to undertake expansion in company operations as it seeks to provide an objective view of the all-in costs for derivatives users, helping the sell-side to minimise their balance sheet usage and the buy-side with the information they need to make smarter counterparty decisions.
JPX too, through this investment, is looking to strengthen ties with OpenGamma, as well as to gain more insight and advanced technological capability in the fields of risk management and fintech. Peter Rippon, CEO of OpenGamma, said,
JPX has an established tradition of leading the charge to provide efficient and innovative management of risk for Japan’s financial and capital markets. This track record makes them ideal partners and catalysts for our mission of enabling derivatives users to make smarter trading and clearing decisions.
Takeshi Hirano, executive officer of JPX, also commented on the investment saying,
We’ve followed OpenGamma’s transformation from an innovator in the development of open source software into an important risk analytics provider for institutional finance.
