BGC Brokers’ Capitalab launches combined options and LCH cleared swaps compression

Maria Nikolova

The Swaptioniser portfolio compression service has successfully executed the first combined compression cycle in Swaptions, Caps, Floors and LCH cleared interest rate Swaps and Forward Rate Agreements.

Capitalab, a division of BGC Brokers L.P. (“BGC Brokers”), an entity within BGC Partners, Inc. group of companies (NASDAQ: BGCP) today announced that its Swaptioniser® portfolio compression service has successfully executed the first combined compression cycle in Swaptions, Caps, Floors and LCH cleared interest rate Swaps and Forward Rate Agreements (FRAs).

As a result Capitalab’s appointment as an Approved Compression Service Provider (ACSP) for LCH’s SwapClear service (LCH’s clearing platform for interest rate derivatives), Capitalab’s non-cleared Rates compression service now includes LCH cleared Swaps and FRAs within the same cycle as bilateral Swaptions, Caps, Floors and Swaps. Capitalab is the first provider to offer a combined option and cleared swap product approach, where additional risk offsets and the larger trade pool provide attractive improvements in compression and operational efficiency.

“With this new milestone, Capitalab is leveraging its Swaptions expertise in the compression space to deliver a new solution to the industry, on the back of strong demand. Our clients appreciate the ability to combine major Interest Rate products in one streamlined compression exercise, reducing gross notional, leverage exposure and counterparty risks in an efficient manner,” said Gavin Jackson, Capitalab’s London-based co-founder.

“We now have an enhanced multi-product multilateral compression with cleared and bilateral trades combined in the same exercise: notional reduction of both bilateral and CCP positions. As a result, we believe Capitalab’s service facilitates significantly more flexible constraints and allows cleared positions to be offset with bilateral positions, particularly regarding Caps, Floors and Swaptions which can carry significant delta. We were also very pleased to have clients such as J.P. Morgan and Citi included,” said David Bachelier, Capitalab’s Singapore-based co-founder.

Cameron Goh, Global Head of Product, Rates and FX, LCH, said: “We are delighted to welcome Capitalab as an additional compression partner at SwapClear to provide more choice to our members and their clients. The ability for customers to compress cleared and non-cleared positions increases opportunities to drive down notional outstanding and increase capital and operational efficiencies for the market. We look forward to completing more compression cycles with Capitalab on behalf of our mutual customers.”

Read this next

Digital Assets

Revolut receives FCA’s go-ahead to launch crypto trading

British fintech and banking firm Revolut has received a regulatory go-ahead to launch its cryptocurrency services in the UK.

Digital Assets

GBTC share is trading at 36% below bitcoin spot price

Grayscale Bitcoin Trust share has widened its discount relative to the underlying cryptocurrency held in the fund, the highest margin ever since its debut in 2013. Digital Currency Group’s flagship GBTC shares traded at a discount of 35.8% to net asset value (NAV) today.

Digital Assets

Crypto lender Nexo investigated by 8 US state regulators

State securities regulators in New York, California, Kentucky, Maryland, Oklahoma, South Carolina, Washington and Vermont are investigating crypto lender Nexo for allegedly failing to register its Earn Interest Product.

Metaverse Gaming NFT

Astar Network’s ad features 329 top brands to support Web3 in Japan

Blockchain innovation hub Astar Network is making strides in promoting the Web3 adoption worldwide. In yet another milestone, the smart contracts platform has run a national newspaper ad in Japan that set a new global record with participation from 329 blue-chip firms.

Digital Assets

Pyth Network welcomes onchain data from crypto market maker Auros

“By sharing our high-frequency trading data with a truly onchain decentralized network, we aim to foster innovation that will lead to better financial solutions for all participants.”

Digital Assets

Tokeny integrates Ownera to boost liquidity of tokenized assets

“The adoption of FinP2P will result in higher liquidity and better access to capital and assets by providing regulated firms with one secure point of connection to multiple digital asset networks across the globe.”

Digital Assets

BingX launches subsidy vouchers to cover user losses in copy trading

“With the introduction of copy trade subsidy vouchers, new users can easily try out trading strategies without incurring losses.”

Digital Assets

Talos expands sales team: Frank van Zegveld, Matt Houston, Hillary Conley

“The extensive leadership and industry expertise of these new hires will enable us to build long-lasting relationships as we continue to build out our global presence in EMEA and beyond.”

Executive Moves

FX and CFD broker Emporium Capital hires industry veteran Robert Woolfe as COO

His past experience within the FX and CFD industry includes top roles at Capital Index, London Capital Group, GKFX, ETX Capital, and IG.  “I’m delighted to be part of the Emporium Capital team and spearheading the brokerages global expansion plans”, he said about the appointment.

<