Recall Capital launches dynamic market trading solution in London
Björn Wallin introduces his solution for SMEs to increase trading volume and reduce volatility
Recall Capital is a dynamic trading solutions provider, promising listed companies lower volatility, increased trading volume, and a platform for new capital acquisition and internationalisation. Founder and CEO Björn Wallin has been working with SMEs in Sweden for four years, and the company is now expanding its offering through Europe. Björn explains how Recall Capital creates a mini ecosystem for each of its client companies: drawing money from the financial market, creating value within the business, and feeding that value back to the market. The ultimate benefit, he says, is that SMEs can concentrate on developing their business – rather than having to worry about financing themselves.
Mrassociates: How has market behaviour changed, that companies now need these kinds of services?
Björn Wallin: First of all, investors have become more realistic today than they have ever been before. They are not so blindly optimistic anymore.
As a consequence of that, I think SMEs have to take more responsibility for themselves. It’s not that they can’t count on the financial market to provide it with money or assets as they have done before: they now have to deal with this themselves. No one else is doing it, so it’s more pressure on management and the board of directors that they have to actually handle all this to get the company financed.
Mrassociates: Now, the New York Stock Exchange has been offering these services itself for many years; what’s been its impact there?
Björn Wallin: Basically they’re doing half of what we are doing. They have what we call the designated market maker, which is a technical solution topped up with a human touch. We’re doing roughly the same – having the same parameters, specialising in SME companies – but we’re also using this trading solution for the capital acquisition side.
So, we’re creating a mini ecosystem for every company that we have in the financial markets. We add on a tap, straight into the market. Open it up a little bit, get the money over to the company so they can use it for their operation; create value, it goes straight back into the financial market. We open up the tap again, and we get the money, close the tap, over to the company so they can create, and loop back to the financial market… so this is like an ecosystem for SMEs.
Mrassociates: And what effect does that have on trading volumes and volatility?
Björn Wallin: So basically there are strict relations between volumes, values, and volatility. And all algorithms out there in the market are actually trying to handle all those parameters.
What we have done is actually, we have looked at specifically SMEs. We measured 20,000 companies worldwide, just to understand how these relations are combined to each other. And when we found that out, we added other dynamic aspects as well. We’re adding on different patterns from the behaviour in the trading, the likely volatility ahead; and on top of that we also put some human touch.
The result of it is lower volatility, which is super good for all kinds of trading. So I think our trading engine is more appropriate for SME companies.
Mrassociates: And in this way you’ve adapted this solution specifically for SMEs – and SMEs in Europe, as well?
Björn Wallin: Yes, absolutely. We’re now going into Europe – but we can use it anywhere, because now we’re looking into the SME market globally. There’s the same pattern, the same behaviours, basically the same everywhere.
What we have to consider from country to country is some kinds of legislation, or if there are certain other adjustments we have to make. But basically we can use it anywhere.
So I would say, we’re now entering Europe. The biggest SME markets are Australia, Canada. But, let’s start in Europe.
Mrassociates: And what’s the ultimate benefit to those SMEs?
Björn Wallin: I think the best benefit is that the customer can actually get more focused on creating and developing their own business, and let us handle the financial issues.
I think that’s good for the company, I think that’s good for their shareholders as well. So it’s a classic win-win solution.
Mrassociates: Björn, thank you very much.
Björn Wallin: Thank you.