Series A Brings $18M to Trading Platform Saphyre

Artificial intelligence (AI)-powered trading automation platform Saphyre has raised $18.7 million in a Series A funding round led by HCAP Partners, assisted by J.P. Morgan and BNP Paribas.

“Saphyre’s AI-powered platform enables direct collaboration between multiple financial parties related to the same client,” the company said in a Tuesday (March 22) press release.

“The platform digitizes all pre-trade data and documents, eliminating redundant manual processes and allowing for secure, expedited access to data throughout the trade lifecycle.”

Launched in 2017, Saphyre says it has garnered 104 patents and been integrated with seven different platforms, with clients managing more than $3 trillion in assets.

Saphyre says it will use the Series A funding to accelerate product development initiatives in both its pre- and post-trade offerings, along with helping its ongoing expansion of “interoperability initiatives” with a number of other industry FinTech/vendor solutions.

“This funding will accelerate the rollout of our firm’s offerings and ability to further prove that, in leveraging Saphyre’s patented technology in pre-trade wins, you instantly gain post-trade competitive advantages as well as operational benefits,” said Gabino Roche, the company’s founder and CEO.

Tim Bubnack, managing partner at HCAP, said that in addition to Saphyre’s tools, the company has created a culture that meshes its HCAP’s “gainful jobs approach.”

Read also: Commerce Department’s NIST Unit Seeks Comment on Draft AI Rules for Finance Sector

As PYMNTS reported earlier this week, the use of artificial intelligence (AI) by financial institutions (FIs) and FinTechs is seeing rapid growth, and regulators are getting close to establishing rules for advanced systems that power decisioning at scale for financial outcomes that could be biased.

After seeking input last year, the U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) issued a draft of its “AI Risk Management Framework” and has given interested parties until April 29 to comment as it seeks progress in a pressing matter.

NIST said a second draft is expected by summer or fall of 2022.