Deutsche Börse, Illuminate lead $5m funding for RegTek.Solutions
German shares and securities marketplace operator Deutsche Börse has joined with venture capital firm Illuminate Financial Management in a $5m funding round for RegTek.Solutions, which provides regulator compliance software designed to improve the quality, transparency and control of regulatory reporting obligations in a number of jurisdictions. RegTek.Solutions anticipates a growing need for its services in light of new Mifid II regulations that are due to come into force next year.

Deutsche Boerse and venture capital firm Illuminate Financial Management have co-led a $5 million funding round for RegTek.Solutions.

Launched earlier this year and based in New York, RegTek.Solutions is a specialist provider of regulatory compliance software.

It provides trade reporting tools and software in a bid to improve the quality, transparency and control of regulatory reporting obligations across various jurisdictions.

Deutsche Boerse’s head of market data and services, Holger Wohlenberg, and managing partner at Illuminate Financial Management, Mark Beeston, will become non-executive board members at RegTek.Solutions.

Brian Lynch, CEO at RegTek.Solutions, explained the investment from both parties is “real validation of our offering and prospects of growth”.

He added: “As the next bottleneck of regulatory deadlines nears and both sell-side and buy-side firms grapple with adhering to the new rules, we are seeing strong demand across the market for outsourced trade reporting tools.”

Ankur Kamalia, head of venture portfolio management at DB1 Ventures - Deutsche Boerse’s corporate venture capital arm - explained RegTek.Solutions established itself as a reliable service provider with knowledge within the post-trade space.

The investment made in exchange for a minority stake will be used to scale RegTek.Solutions’ operations ahead of MiFID II.