On Monday, QuantInfo Technology, a Shanghai-based company that provides quantitative trading technology and services, announced that it has completed a B round of financing worth over 100 million yuan ($15.7 million). This round was led by an internet-related strategic investor, followed by Koala Fund. The funds will be mainly used for the R&D of its products.
FICC refers to “Fixed Income, Currencies and Commodities.” QuantInfo Technology is a financial technology company focusing on building FICC transaction infrastructure. It hopes to ride this trend by gradually building a trading infrastructure with electronic trading platforms and networks.
FinOne, the firm’s self-developed automated trading software covering all asset classes and scenarios, features with high throughput and low latency. It serves various customers including stock exchanges, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank and some joint-stock banks.
Compared with the U.S., the transaction automation level of Chinese FICC assets is lower. In recent years, the market-oriented reform of FICC in China is constantly advancing. At the policy level, Beijing regulators had released a “Monetary Policy Report Q1 2021,” requiring market actors to steadily deepen reform of the renminbi (RMB) exchange rate and to improve the floating exchange rate system based on market supply and demand. Regulators also aims to enhance the flexibility of the RMB exchange rate.
In addition, with the opening of exchange rate policy, foreign capital participates in bond transactions more frequently, which puts forward higher requirements for market liquidity. To make the exchange rate more market-oriented, it requires the fluctuations of exchange rates to increase. The low-level trading infrastructure is difficult to provide sufficient liquidity, and can not fully capture the profit opportunities of buyers’ transactions. The automated trading infrastructure needs to be upgraded.
The majority of the QuantInfo Technology team has rich experience in electronic trading. The individuals in charge of products and trading technology solutions have served in well-known related companies, both in China and abroad, such as Thomson Reuters and Merrill.