London-based regulatory technology (RegTech) startup SteelEye has raised $21 million in Series B round of funding.
Founded in 2017, SteelEye works with banks, hedge funds, brokers, asset managers and more to help them comply with stringent regulatory policies and requirements in their respective industries.
SteelEye essentially brings compliance to the cloud through a SaaS platform, delivering streamlined regulatory reporting, improved insights and reduced risk of non-compliance with regulations mandated by Europe’s Market Abuse Regulation (MAR). Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), Financial Industry Regulatory Authority (FINRA), in the US and abroad.
For example, the SteelEye data platform focuses on archiving and record-keeping and is built tamper-proof through a WORM (write once, read many) foundation that ensures information such as orders, trades and associated communications cannot be modified. It includes built-in search functionality to easily retrieve data upon regulator or auditor request, and full “trade reconstruction” capabilities to recreate the circumstances surrounding a particular trade or transaction.
Ultimately, SteelEye preserves a complete and accurate paper trail of everything that goes on in the heavily-regulated financial sector and goes some way to combating insider trading and other market abuses.
“Faced with regulatory clampdowns, massive data volumes and inflationary effects on budgets, financial institutions need ways to reduce costs through efficiencies and automation,” SteelEye CEO Matt Smith said in a press release. “This we deliver through our unique, data-centric compliance platform.”
Computer Services, Inc. is a publicly traded regulatory compliance company. (CSI) has seen a flurry of activity in the regtech space of late, with the recent news that a duo of private equity firms is set to acquire it for $1.6 billion.
Elsewhere, another London-based regtech called Passport secured $16.2 million in funding last year to help financial institutions automate their compliance processes, while California-based Hummingbird landed $30 million.
SteelEye, for its part, has previously raised about $22 million in funding, and with its latest cash injection it is looking to accelerate its growth, particularly in global markets such as North America, the company said.
Ten Coves Capital led the company’s Series B round with participation from Fidelity International Strategic Ventures, Illuminate Financial, Beacon Equity Partners and others.