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

    Institutional FX

    SEC closer to approve 24X’s application for a pioneering 24/7 trading venue

    “Opening the first-ever exchange offering around-the-clock trading in U.S. equities is unprecedented and would create major new opportunities for broker-dealers and their institutional and retail customers around the world. 24 Exchange is excited at the potential for bringing these opportunities to the global market for U.S. equities.”


    Klarna eyes US IPO as valuation targets $20 billion

    Klarna Bank AB, a Swedish fintech and previously Europe’s most highly valued startup, is advancing with plans for a potential U.S. listing, which could become one of the most significant listings of the year.

    Digital Assets

    Shiba Inu Enhances Privacy & Security with New Encryption

    SHIB, the force behind the Shiba Inu cryptocurrency, today introduced Fully Homomorphic Encryption (FHE) into its platform, ensuring unmatched data protection for its users.

    Digital Assets

    Binance Broadens Its VIP Invitation Program for Traditional Asset Traders

    Step Into the Future of Trading: Binance Invites Traditional Asset Traders to Join Its Exclusive VIP Program

    Digital Assets

    Algotech Presale Revolutionizes DeFi Scene, Surpassing $1 Million Raised in Just Weeks

    Emerging Cryptocurrency trading platform Algotech (ALGT) known to be famous with its cutting-edge features. The TradFi platform features advanced algorithms to provide a competitive edge to traders. 


    Revolut enables direct transfers from Singapore to Bangladesh and Kenya

    British fintech firm Revolut has broadened its array of services with the introduction of the “Mobile Wallets” feature in Singapore, facilitating direct money transfers to Bangladesh and Kenya.

    Digital Assets

    SBF claims “zero loss” to FTX customers, 100-year sentence is “grotesque”

    Sam Bankman-Fried, the former FTX CEO who was found guilty of fraud charges last year, is facing his sentencing next month. But before that day arrives, he’s making a plea for what he considers a fair shake.

    Digital Assets

    Bitcoin nears $62,000, sparking retail buying frenzy

    Bitcoin dashed past the $61,000 barrier on Wednesday, a peak it hadn’t touched since the waning days of November 2021.

    Market News

    OPEC+ Extension of Oil Output Cut Causes Rally

    The dynamics surrounding crude oil are indeed fascinating, given its unique role as both a globally traded commodity and a vital energy source deeply influenced by the OPEC+ alliance’s decisions.