LONDON, Nov. 22, 2016 /PRNewswire/ -- BGC Brokers
L.P.'s ("BGC Brokers") Capitalab, an entity within BGC Partners,
Inc. group (NASDAQ: BGCP), today announced that it has
successfully launched its multilateral portfolio compression
service for FX Options as well as for Interest Rate Caps and
Floors.
Since June 2016, five FX Options
compression runs have been executed, in USDJPY and EURUSD, with the
participation of respectively five and seven major FX Option
dealers. In the last three Interest Rate Options compression runs
organised by Capitalab, a division of BGC Brokers L.P.,
participants have also included Caps and Floors, together with
Swaptions. Combining products in the same compression cycle is
proving to have a positive impact on efficiency. Caps and Floors –
options on Libor and Euribor forward rates - are known to be
capital intensive, because of their large notionals.
Capitalab brings to market cutting-edge portfolio compression
services and is the first provider of multilateral portfolio
compression for options. Capitalab's compression services are
designed to allow participants to reduce their derivatives
exposures, while maintaining neutral portfolio risk, and to enable
banks to make significant savings in capital and initial margin by
reducing the outstanding gross notional of derivatives portfolios
while optimizing the counterparty exposures. Compression services
provided by Capitalab are highly customisable and accommodate many
constraints and models used by options traders. Capitalab's
compression services utilise a state of the art proprietary
internal risk and valuation engine.
"With these milestones, we continue to empower clients with
innovative services across a number of critical derivatives
products, now including OTC FX Options and Interest Rate Caps and
Floors," said Gavin Jackson,
Co-Founder of Capitalab. "Our compression services enable clients
to navigate the complexities of an evolving derivatives marketplace
in a seamless and effective manner, by preserving both capital and
liquidity and minimising operational risk in this heightened
regulatory environment," added David
Bachelier, Co-Founder of Capitalab.
"These product-specific launches follow fast on the heels of
Capitalab's success in Interest Rate Swaptions, where it has
to-date compressed close to USD3.5
trillion of gross notional. It has also seen very solid
growth in the number of participants, approaching 25 institutions
in total, which accounts for more than 80% of the interbank volume
traded in the OTC market," said Philip Norton, Global Head of
e-Commerce, BGC Brokers L.P.
In recognition of its innovations and market leadership,
industry publication GlobalCapital has named Capitalab, a
division of BGC Brokers L.P., the "Compression/Compaction Service
of the Year" in this year's Global Derivatives Awards, following
the service's very first year of operation.
About Capitalab
Capitalab, a division of BGC Brokers L.P., provides compression
services that are designed to bring greater capital and operational
efficiency to the global derivatives market. It
assists clients in managing the growing cost of
holding derivatives, while helping them to meet their
regulatory mandates. Through the Swaptioniser® service for
portfolio compression of Interest Rate Swaptions, Caps and Floors
and FX Options, Capitalab looks to simplify the complexities of
managing large quantities of derivatives to promote sustainable
growth and lower systemic risk and to improve resiliency in the
industry.
Capitalab is led by a team of former traders and quants from
sell-side institutions, Olivier
Alvarez, David Bachelier and
Gavin Jackson, who together combine
more than 30 years of experience in interest rates options trading
and quantitative research. BGC Brokers L.P. is regulated by
the UK Financial Conduct Authority and is based in London.
About BGC Partners, Inc.
BGC Partners is a leading global brokerage company servicing the
financial and real estate markets. BGC owns GFI Group Inc., a
leading intermediary and provider of trading technologies and
support services to the global OTC and listed markets. The
Company's Financial Services offerings include fixed income
securities, interest rate swaps, foreign exchange, equities, equity
derivatives, credit derivatives, commodities, futures, and
structured products. BGC provides a wide range of services,
including trade execution, broker-dealer services, clearing, trade
compression, post trade, information, and other services to a broad
range of financial and non-financial institutions. Through brands
including FENICS, BGC Trader, Capitalab, and BGC Market Data, BGC
offers financial technology solutions, market data, and analytics
related to numerous financial instruments and markets.
Real Estate Services are offered through brands including
Newmark Grubb Knight Frank,
Newmark Cornish & Carey, ARA,
Computerized Facility Integration, Landauer Valuation &
Advisory, and Excess Space. Under these names, the Company provides
a wide range of commercial real estate services, including leasing
and corporate advisory, investment sales and financial services,
consulting, project and development management, and property and
facilities management.
BGC's customers include many of the world's largest banks,
broker-dealers, investment banks, trading firms, hedge funds,
governments, corporations, property owners, real estate developers,
and investment firms. BGC's common stock trades on the NASDAQ
Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC
also has an outstanding bond issuance of Senior Notes due
June 15, 2042, which trade on the New
York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is
led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please
visit http://www.bgcpartners.com. You can also follow the
Company at https://twitter.com/bgcpartners and/or
https://www.linkedin.com/company/bgc-partners.
BGC, BGC Trader, GFI, FENICS, FENICS.COM, Capitalab,
Swaptioniser, Newmark, Grubb & Ellis, ARA, Computerized
Facility Integration, Landauer, Landauer Valuation & Advisory,
and Excess Space, Excess Space Retail Services, Inc., and Grubb are
trademarks/service marks, and/or registered trademarks/service
marks and/or service marks of BGC Partners, Inc. and/or its
affiliates. Knight Frank is a service mark of Knight Frank
(Nominees) Limited.
Discussion of Forward-Looking Statements about BGC
Partners
Statements in this document regarding BGC's businesses that are
not historical facts are "forward-looking statements" that involve
risks and uncertainties. Except as required by law, BGC undertakes
no obligation to release any revisions to any forward-looking
statements. For a discussion of additional risks and uncertainties,
which could cause actual results to differ from those contained in
the forward-looking statements, see BGC's Securities and Exchange
Commission filings, including, but not limited to, the risk factors
set forth in its public filings, including the most recent Form
10-K and any updates to such risk factors contained in subsequent
Forms 10-Q or Forms 8-K.
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SOURCE BGC Partners, Inc.