The once monopolistic market for portfolio optimization is entering a new era of competition and investment as a new leverage regime forces dealers to adopt new balancing services instead of traditional rate compression.

In January, Quantile Technologies – one of TriOptima’s early competitors, which is the first in rate compression, secured a $51 million investment from American private equity firm Spectrum Equity. In the same month, IHS Markit pumped $113 million into a new joint venture with