Goldman Sachs, Pivot Investment Partners and Wells Fargo are leading a $16 million investment in Droit Financial Technologies, with participation from DRW, a principal trading firm in a Series A minority investment, the company announced.
Droit was founded in 2012 and aims to provide an enterprise-wide infrastructure facilitating compliance and optimal trading of derivatives across asset classes.
The transaction will provide growth capital to accelerate the deployment of New York-based Droit’s real-time decision-making engine, which provides point-of-execution compliance for sales and trading systems at a broad range of financial institutions. This will see it expand to the Indo-Asia Pacific with the opening of a Singapore office to support business operations in the region and talent acquisition to expand its sales, support and marketing teams.
Droit, a New York-based financial technology company, 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.
“We have been following Droit closely for the past two years and have been deeply impressed with the high-caliber team, its distinctive solution to a complex problem as well as the strong client momentum — and are now delighted to be investors,” said Dinkar Jetley, co-founder of Pivot Investment Partners and former CEO of Worldwide Securities Services at J.P. Morgan Chase.
Combining finance and computational law, ADEPT also establishes that clients are current with regulations and market microstructure across their entities, counterparties and geographies.
“Goldman Sachs is pleased to be both a user of and investor in Droit. The company’s success in creating its ADEPT platform gives it an excellent opportunity to become the industry standard for regulatory-compliant decision engines,” said Joanne Hannaford, Managing Director, Technology at Goldman Sachs.
Droit claims to have on-boarded a growing list of global financial institutions since its first live install in February 2014.
Starting with Dodd-Frank, the platform has reportedly 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.
“We’re delighted with the support received from our investors,” said Satya Pemmaraju, CEO of Droit. “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 centralisation, standardisation, transparency and efficiency.”
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