LONDON, June 4, 2020 /PRNewswire/ -- Capitalab, a
division of BGC Brokers LP, an entity within BGC Partners, Inc.
(NASDAQ: BGCP), today announced the execution and subsequent
compression of Capitalab's first swaption margin optimisation
trades leveraging LCH SwapAgent, a service for the non-cleared
derivatives market. As part of Capitalab's leading Rates Initial
Margin Optimisation service, swaption notional was created between
Nomura and Deutsche Bank and processed by LCH SwapAgent.
The package comprised over a thousand bilateral swaptions and
cleared swaps and was successfully compressed in Capitalab's
subsequent margin optimisation cycle, with full straight-through
processing provided via MarkitSERV.
LCH SwapAgent trades are the latest products to be eligible for
Capitalab's offering for Initial Margin Optimisation. This
expansion arrives with the news of Capitalab's largest month ever
for its interest rate margin optimisation service, with over
US$5 billion of IM savings for its
global banking clients.
Gavin Jackson,
London-based co-founder of
Capitalab, commented on today's announcement, "We are delighted to
add LCH SwapAgent trades to our offering. The common CSA that
SwapAgent trades utilise is helpful in allowing participants to
relax constraints in the optimisation and achieve even greater IM
reduction."
David Bachelier,
Singapore-based co-founder of
Capitalab, added, "We are continually looking for ways to be more
efficient and provide a better service to our clients, and
SwapAgent is helping us to achieve that. Capitalab is pleased to
highlight SwapAgent and MarkitSERV support for Capitalab's Interest
Rate Option and Cross Currency Swaps compression cycles."
Nathan Ondyak, Global Head
of LCH SwapAgent, said: "We're delighted to be part of this
initiative to further enhance efficiency for the derivatives
market. The integration of LCH SwapAgent with these established
market infrastructures enables a broader range of market
participants to benefit both from the operational and risk
management efficiencies of LCH SwapAgent's centralised registration
and settlement of bilateral trades. Connecting with Capitalab and
MarkitSERV also allows those trades to be included in broad
portfolio optimisation and compression cycles, driving down
notional outstanding and increasing efficiency for all."
Ales Lipensky, Head of
Derivatives Funding at Deutsche Bank AG, said: "Deutsche Bank has
been participating in Capitalab's Initial Margin Optimisation
exercises with excellent results, and the integration with
SwapAgent for trades executed as part of Capitalab services opens
up a significant potential for further Initial Margin Optimisation.
We look forward to continue working with SwapAgent as a service in
this respect in the future."
Magnus Lindahl, XVA Trader
at Nomura International Plc, said: "We are very pleased to see the
inclusion of SwapAgent in these optimisations. We see large
potential benefits from the standardisation of CSAs and also the
net settlement that SwapAgent offers and are looking forward to
further development in this space."
Chris Jackson, Managing
Director, IHS Markit said, "As the market for non-cleared
derivatives continues to evolve, there is a growing need for margin
optimisation; workflows can greatly contribute to a reduced cost of
trading. The MarkitSERV team is proud to collaborate with Capitalab
and SwapAgent in enabling greater value to firms across the trading
lifecycle."
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 of the Board
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. These include
statements about the effects of the COVID-19 pandemic on 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 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 Contacts at BGC Partners, Inc.:
Harjeet Singh
+44 207 894 8829
Investor Relations Contacts at BGC Partners, Inc.:
Ujjal Basu Roy
+1 212 610 2426
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