LONDON, Sept. 5, 2023 /PRNewswire/ -- Capitalab, a
division of BGC Brokers LP, an entity within BGC Group, Inc.
(Nasdaq: BGC) ("BGC Group" or "BGC" or the "Company"), today
announced it has successfully completed its third execution of a
new USD LIBOR to SOFR swaption migration service, supported by 10
major global investment banking groups.
This pioneering new service seamlessly switches LIBOR-referenced
USD swaptions into vanilla SOFR swaptions, removing complexities
caused by the impact of ISDA supplements on the legacy LIBOR
portfolio and LIBOR fallback rules. With valuation impacts settled
at a portfolio level and the replacement inventory's vanilla
nature, they are substantially easier to manage. The new service
also removes the need for bilateral negotiations between
participants and mitigates the need for extensive resources to
price the LIBOR inventory conversion to SOFR or its ongoing
management under LIBOR fallback rules.
The first three cycles executed seamlessly, switching in excess
of 10,000 LIBOR swaptions to SOFR, supported by automated trade
booking. Capitalab plans to execute additional multilateral cycles
over the coming weeks, with the aim to migrate participants' near
entire LIBOR inventory to SOFR swaptions.
Capitalab co-founder and managing director Gavin Jackson, said, "On the back of strong
client demand, Capitalab mobilised its technology and options
expertise to deliver a highly effective solution to our valued
clients in record time. We are delighted with the seamlessness of
the first few executions and the strong support from our clients.
We look forward to tackling the rest of the inventory shortly, and
to solving future multilateral challenges for the derivatives
marketplace."
David Briggs, senior sales
executive at Capitalab, added, "Since our inception, Capitalab has
always been synonymous with the options market. It is with great
pleasure that we can deliver a pioneering service, resolving
another issue with a robust solution. We have helped to save our
clients significant resourcing hours by removing the required
bilateral negotiations for switching their LIBOR inventory."
About Capitalab
Capitalab, a division of BGC Brokers LP, 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, Equity options, FX and FX
Options, as well as the Initial Margin and Capital 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. BGC Brokers LP is
authorised and regulated by the UK Financial Conduct Authority and
is based in London. BGC Brokers LP
is a subsidiary of BGC Group, Inc. (Nasdaq: BGC), a leading global
brokerage and financial technology company.
About BGC Group, Inc.
BGC Group, Inc. ("BGC") is a leading global brokerage and
financial technology company. BGC, through its various affiliates,
specializes in the brokerage of a broad range of products,
including Fixed Income (Rates and Credit), Foreign Exchange,
Equities, Energy and Commodities, Shipping, and Futures. BGC,
through its various affiliates, also provides a wide variety of
services, including trade execution, brokerage, clearing, trade
compression, post-trade, information, and other back-office
services to a broad range of financial and non-financial
institutions. Through its brands, including Fenics®, FMX™, FMX
Futures Exchange™, Fenics Markets Xchange™, Fenics Digital™, Fenics
UST™, Fenics FX™, Fenics Repo™, Fenics Direct™, Fenics MID™, Fenics
Market Data™, Fenics GO™, Fenics PortfolioMatch™, BGC®, BGC
Trader™, kACE2™, and Lucera®, BGC offers financial
technology solutions, market data, and analytics related to
numerous financial instruments and markets. BGC, BGC Group, BGC
Partners, BGC Trader, GFI, GFI Ginga, CreditMatch, Fenics,
Fenics.com, FMX, Sunrise Brokers, Poten & Partners, RP Martin,
kACE2, Capitalab, Swaptioniser, CBID, Caventor,
LumeMarkets and Lucera are trademarks/service marks and/or
registered trademarks/service marks of BGC 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 "BGC". BGC is led by Chairman of the Board and Chief
Executive Officer Howard W. Lutnick.
For more information, please visit http://www.bgcg.com. You can
also follow BGC at https://twitter.com/bgcgroupinc,
https://www.linkedin.com/company/bgc_group and/or
http://ir.bgcg.com.
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. These
include statements about the Company's business, results, financial
position, liquidity and outlook, which may constitute
forward-looking statements and are subject to the risk that the
actual impact may differ, possibly materially, from what is
currently expected. 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 ("SEC") filings, including, but not limited to, the risk
factors and Special Note on Forward-Looking Information set forth
in these filings and any updates to such risk factors and Special
Note on Forward-Looking Information contained in subsequent reports
on Form 10-K, Form 10-Q or Form 8-K.
Media Contact:
Harjeet Singh
+44 207-894-8829
Investor Contact:
Jason Chryssicas
+1 212-610-2426
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