The prime brokerage division of Societe Generale isoffering a full straight-through processing (STP) of FX options novations followinga new integration with fintech firm Capitolis. The launch aims to automate post-trade processing forFX options, reducing manual work and operational risk for institutionalclients. Full Automation for Prime Brokerage ClientsCapitolis has reportedly expanded its Novationsplatform to support full STP functionality, allowing trades to moveautomatically through Societe Generale’s transaction risk management system(TRM).The solution enables the bank’s asset managementclient to novate FX options more efficiently, cutting operational workload andreducing settlement times. Capitolis said the service is now live and availableto other banks looking to adopt a similar level of automation in their FXoptions workflows.“Capitolis is proud to offer Societe Generale PrimeBrokerage a fully STP solution,” commented Ben Tobin, Co-Head of MarketDevelopment for Portfolio Optimization, Capitolis.“We are grateful to Societe Generale for bringingtogether all parties, and it has been great to get this over the line as wewelcome our first asset manager on the Capitolis Novations platform.”Setting a New Standard in FX Post-Trade ProcessingBy introducing straight-through processing for FXoption novations, Capitolis aims to help financial institutions expandexecution opportunities while minimizing risk and capital usage. This new step marks a milestone for both firms as theycontinue to bring automation and operational efficiency into the heart ofglobal FX markets.Meanwhile, Australia’s securities regulator fined SocieteGenerale Securities Australia $3.88 million for failing to prevent clients fromplacing potentially manipulative orders in electricity and wheat futuresmarkets. The penalty was issued after the Markets Disciplinary Panel determinedthe firm breached market integrity rules.According to the panel, two clients of the French bank’sAustralian unit placed 33 suspicious trades between May 2023 and February 2024.These orders were designed to influence daily settlement prices near marketclose, a prohibited practice known as “marking the close.”Societe Generale Securities was the second-largestparticipant in Australia’s ASX 24 futures market as of June 2023, accountingfor almost 12% of total trading volume. The enforcement action comes amidincreased regulatory scrutiny of commodities markets following price volatilitytriggered by global supply disruptions linked to the Russia-Ukraine conflict.This article was written by Jared Kirui at www.financemagnates.com.