Akinova, the start-up that aims to create a platform or marketplace for the transfer and trading of insurance and reinsurance risks, is adopting a focus on clearing trades, signing up Ian Axe to its advisory team, a former Group CEO of LCH.Clearnet.
Clearing refers to the reconciliation of purchases or sales of securities, or other financial instruments, as well as the direct transfer of funds between financial institutions.
Clearing technology is well-established in financial markets and some might question why a risk transfer platform wouldn’t opt to use a ready-made solution that it can plug into.
Akinova is exploring how clearing fits into its own platform offering to risk transfer, insurance and reinsurance markets, hence bringing onboard a recognised expert in the field. It’s not clear whether Akinova is trying to create its own clearing technology, or more simply utilise an existing provider of clearing technology.
Reconciling trades is key though for any marketplace and should be a core feature of any tech platform looking to host trades.
Ian Axe joins Akinova’s Senior Advisor team, bringing 25 years experience in Capital Markets, Private Banking and Asset Management gained in roles across Europe, US, Asia and South Africa.
As Group CEO of LCH.Clearnet and previously as Global Head of Operation & EMEA COO at Barclays Capital, Axe gained expertise in global market trading platforms, clearing houses and financial technology.
Most recently Axe was the CEO of merchant bank Panmure Gordon.
Axe commented on the appointment as advisor, “To deliver growth and serve their clients better, it’s inevitable that Re/insurance and Capital Markets industries will continue to work more closely together. To tackle changes in the risk landscape experienced by insureds globally, what is needed is a truly neutral and regulated industry venue where risks and capital can be matched on a marketplace, but where transactions are also cleared. AkinovA is creating that one-stop-shop.
“This combination will unlock the path to new products for enhanced climate resilience, to cover intangible assets which make around 80% of the world’s assets and create new opportunities to cover cyber risks and other dislocated lines of business. These are all rapidly growing risks which investors already own, today, within their PE, pension or other global funds. However, with neither any marketplace to transfer and trade those products to hedge their position, nor which allows them to be rewarded for holding those risks, it is about time that this be addressed. AkinovA is well placed to tackle this huge market opportunity.”
Henri Winand, AkinovA CEO, added, “Post financial crisis, Ian transformed LCH.Clearnet in a changing regulatory market and grew its products and geographical footprint materially. In doing so, he worked with senior Central Bankers and Regulators across the US, Continental Europe and UK. Ian really understands how market trading platforms and clearing operations can create liquidity and trust between counterparties in a truly dynamic environment and how they are critical to unlock growth and create new products.”