LONDON, June 26, 2019 /PRNewswire/ -- Capitalab, a
division of BGC Brokers LP, an entity within the BGC Partners, Inc.
(NASDAQ: BGCP) group of companies, today announced in collaboration
with Singapore Exchange (SGX) the launch of its SGX Nikkei 225
options compression service, a multilateral, model agnostic and
risk constrained first-of-its-kind for Equity Derivatives.
"We are delighted to enter the Equity Derivatives space, where
we believe there is much to be done in optimisation of notional
exposures and margins. This first execution in a new asset class
celebrates Capitalab's innovative DNA in collaboration with SGX and
our clients," said David
Bachelier, Capitalab's Singapore-based co-founder.
Equity Listed compression enables participants to lower capital
costs and reduce open positions of derivatives that carry some of
the highest cost of capital per unit of notional exposure in the
industry.
This inaugural execution is the result of successful
collaboration between SGX - a leading innovative exchange - and
dedicated participants to deliver a new solution for the
industry.
"The execution of the first Nikkei Equity Derivatives
compression cycle is a milestone in the financial industry;
Capitalab and SGX have worked closely and successfully with all
participants to deliver a solution fulfilling market requirements,"
says Olivier Roguez, head of
equity sales at Capitalab.
Michael Syn, Head of
Derivatives at SGX, said; "SGX and Capitalab are responding to
market participants' need for an efficient service to optimise
their outstanding positions with increased capital and cost
savings. In 2014, SGX was the first Asian exchange to run
compression on OTC derivatives. Today, we are again leading the way
by extending portfolio compression onto listed Asian
derivatives."
Gerben van Veldhuijsen, Head of Corporate Strategy at
Optiver Asia Pacific, commented; "We are very pleased
that Capitalab has taken the lead in APAC to facilitate compression
services to its participants by partnering with SGX. Constraints
around leverage ratio exposures have been a primary concern to the
growth of our business. Compression of open interest allows us to
warehouse more risk and continue to play our role as a market maker
effectively. It has been intuitive and straightforward to control
our portfolio risk changes through Capitalab's customized risk
controls. We are looking forward to continue our partnership with
Capitalab."
Emmanuel Dray, Global Head
of Equity Derivatives Institutional Sales and Equity Derivatives
Linear Trading at BNP Paribas, said; "As the first bank to tap into
the Equity Derivatives Compression market, BNP Paribas is delighted
to take part in the inaugural execution, reinforcing our leading
Equity Derivatives expertise globally. We have been partnering
closely with Capitalab over the year, applying innovation to adapt
compression into Equity Derivatives that enables us to better
control our balance sheet constraints. Capitalab provides agile
solutions as well as proprietary optimisation technology that
meet our specific needs and we look forward to continue working
with them."
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, Interest Rate Swaps, Caps and Floors and
FX Options, as well as Initial Margin Optimisation service and
fully automated trade processing, 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. The Capitalab brand is part of Fenics's
fully electronic family of brands. BGC Brokers L.P. is authorised
and regulated by the UK Financial Conduct Authority and is based in
London. BGC Brokers LP is a
subsidiary of BGC Partners, Inc. (NASDAQ: BGCP), a leading global
brokerage and financial technology company.
About BGC Partners, Inc.
BGC Partners is a leading global brokerage and financial
technology company. BGC's 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, Lucera, and Fenics Market
Data, BGC offers financial technology solutions, market data, and
analytics related to numerous financial instruments and markets.
BGC, BGC Trader, GFI, Fenics, Fenics Market Data, Capitalab, and
Lucera are trademarks/service marks and/or registered
trademarks/service marks of BGC Partners, Inc. and/or its
affiliates.
BGC's customers include many of the world's largest banks,
broker-dealers, investment banks, trading firms, hedge funds,
governments, corporations, and investment firms. BGC's Class A
common stock trades on the NASDAQ Global Select Market under the
ticker symbol "BGCP". 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 BGC at https://twitter.com/bgcpartners,
https://www.linkedin.com/company/bgc-partners and/or
http://ir.bgcpartners.com/Investors/default.aspx.
Discussion of Forward-Looking Statements about BGC
Statements in this document regarding BGC that are not
historical facts are "forward-looking statements" that involve
risks and uncertainties, which could cause actual results to differ
from those contained in the forward-looking statements. Except as
required by law, BGC undertakes no obligation to update 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 and Special Note on Forward-Looking
Statements set forth in these filings and any updates to such risk
factors and Special Note on Forward-Looking Statements contained in
subsequent Forms 10-K, Forms 10-Q or Forms 8-K.
About Singapore Exchange
Singapore Exchange (SGX) is Asia's leading and trusted market
infrastructure, operating equity, fixed income and derivatives
markets to the highest regulatory standards. As Asia's most international, multi-asset
exchange, SGX provides listing, trading, clearing, settlement,
depository and data services, with about 40% of listed companies
and over 80% of listed bonds originating outside of Singapore.
SGX is the world's most liquid international market for the
benchmark equity indices of China,
India, Japan and ASEAN and offers commodities and
currency derivatives products. Headquartered in AAA-rated
Singapore, SGX is globally
recognised for its risk management and clearing capabilities. For
more information, please visit www.sgx.com.
Media Contacts at BGC Partners, Inc.:
Harjeet Singh
+44207894 8829
Investor Relations Contacts at BGC Partners,
Inc.:
Ujjal Basu Roy
+12126102426
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