LONDON, June 8, 2021 /PRNewswire/ -- Capitalab, a
division of BGC Brokers LP, an entity within the BGC Partners, Inc.
(NASDAQ: BGCP) group of companies, announced today enhancements to
its Capitalab FX, with CLS optimisation service, which
utilises FX trade data provided by CLS. The service focuses on Risk
Weighted Asset (RWA) under the Internal Models Method (IMM) and
Standardised Approach for Counterparty Credit Risk (SA-CCR)
calculations, bringing new ways to optimise capital for clients
before and after SA-CCR adoption.
Capitalab's innovative new offering is powered by proprietary
technology, where participants target various metrics in a unified
optimisation cycle combining compression and risk-balancing
technologies.
David Bachelier, Capitalab's
Singapore-based co-founder, said,
"Additional metrics available to optimise include RWA IMM exposures and SA-CCR add-ons, allowing
clients to be at the forefront of preparations for the
game-changing SA-CCR regulatory framework, while optimising their
current and future capital requirements."
Gavin Jackson, Capitalab's
London-based co-founder, added,
"Capitalab successfully executed the third live optimisation cycle
of its Capitalab FX, with CLS service, with an enhanced
focus on RWA IMM and SA-CCR. Our
second cycle was roughly six times larger than the pilot run, and
this third cycle saw a further 50%+ efficiency improvement, with
approximately $50bn gross notional
eliminated per participant, and improvements typically between
30-40% on participants' individually targeted metrics, in a unified
cycle, with some achieving more than $80bn notional compression and 55% reduction in
their targeted metrics. Connectivity to CLS helped to achieve a
light-touch run from an operational perspective, and we look
forward to building on this collaboration within the FX
marketplace."
Adrian Hudd, Global Head of G10
FX Swap Trading at BNP Paribas, said, "We are pleased to further
strengthen our partnership with Capitalab participating
in their newly established multi-lateral FX swap compression
service. Capital requirements for FX are a principal focus of the
industry so the light-touch bespoke compression framework delivered
by Capitalab will certainly bring additional efficiencies to the
marketplace."
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 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 the
Fenics fully electronic family of brands. 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 Partners, Inc. (NASDAQ: BGCP), a
leading global brokerage and financial technology company.
About BGC Partners, Inc.
BGC Partners, Inc. ("BGC") is a leading global brokerage and
financial technology company. BGC specializes in the brokerage of a
broad range of products, including Fixed Income (Rates and Credit),
Foreign Exchange, Equities, Energy and Commodities, Shipping,
Insurance, and Futures. BGC 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 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, Lucera, Corant Global,
Corant, and Piiq 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 "BGCP". BGC 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.
About CLS
Trusted by thousands of counterparties within the global FX
ecosystem, CLS makes FX safer, smoother and more cost effective.
Trillions of dollars' worth of currency flows through our systems
each day.
Created by the market for the market, our unrivaled global
settlement infrastructure reduces systemic risk and provides
standardization for participants in many of the world's most
actively traded currencies.
Our complementary products are designed to enable you to manage
your risk most effectively across the full FX lifecycle – whether
through more efficient processing tools or market intelligence
derived from the largest single source of FX executed data
available to the market. For more information
visit cls-group.com.
Disclaimer:
This communication is directed at CLS members who have
professional experience in matters relating to investments. Any
investment or investment activity to which this communication
relates is available only to such CLS members or will be engaged in
only with such CLS members. Persons who do not have professional
experience in matters relating to investments should not rely on
this communication.
Media contact at BGC Partners, Inc.:
Harjeet Singh
+44 20 7894 8829
Investor contact at BGC Partners, Inc.:
Jason Chryssicas
+1 212 610 2426
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SOURCE BGC Partners, Inc.