BGC Brokers' Capitalab Launches Combined Options and LCH Cleared Swaps Compression
LONDON, Feb. 2, 2018 /PRNewswire/ -- Capitalab, a division of BGC Brokers L.P. ("BGC Brokers"), an entity within BGC Partners, Inc. group of companies (NASDAQ: BGCP) today announced that its Swaptioniser® portfolio compression service has successfully executed the first combined compression cycle in Swaptions, Caps, Floors and LCH cleared interest rate Swaps and Forward Rate Agreements (FRAs).
As a result Capitalab's appointment as an Approved Compression Service Provider (ACSP) for LCH's SwapClear service (LCH's clearing platform for interest rate derivatives), Capitalab's non-cleared Rates compression service now includes LCH cleared Swaps and FRAs within the same cycle as bilateral Swaptions, Caps, Floors and Swaps. Capitalab is the first provider to offer a combined option and cleared swap product approach, where additional risk offsets and the larger trade pool provide attractive improvements in compression and operational efficiency.
"With this new milestone, Capitalab is leveraging its Swaptions expertise in the compression space to deliver a new solution to the industry, on the back of strong demand. Our clients appreciate the ability to combine major Interest Rate products in one streamlined compression exercise, reducing gross notional, leverage exposure and counterparty risks in an efficient manner," said Gavin Jackson, Capitalab's London-based co-founder.
"We now have an enhanced multi-product multilateral compression with cleared and bilateral trades combined in the same exercise: notional reduction of both bilateral and CCP positions. As a result, we believe Capitalab's service facilitates significantly more flexible constraints and allows cleared positions to be offset with bilateral positions, particularly regarding Caps, Floors and Swaptions which can carry significant delta. We were also very pleased to have clients such as J.P. Morgan and Citi included," said David Bachelier, Capitalab's Singapore-based co-founder.
Cameron Goh, Global Head of Product, Rates and FX, LCH, said: "We are delighted to welcome Capitalab as an additional compression partner at SwapClear to provide more choice to our members and their clients. The ability for customers to compress cleared and non-cleared positions increases opportunities to drive down notional outstanding and increase capital and operational efficiencies for the market. We look forward to completing more compression cycles with Capitalab on behalf of our mutual customers."
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.
About BGC Partners, Inc.
BGC Partners is a leading global brokerage company servicing the financial and real estate markets. BGC offers Real Estate Services through its publicly traded subsidiary Newmark Group, Inc. BGC owns GFI Group Inc., a leading intermediary and provider of trading technologies and support services to the global OTC and listed markets. BGC'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, Lucera, and FENICS Market Data, BGC offers financial technology solutions, market data, and analytics related to numerous financial instruments and markets. Real Estate Services are offered through its publicly traded subsidiary Newmark Group, Inc. ("Newmark"). Newmark's Class A common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: NMRK).
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 BGC at https://twitter.com/bgcpartners and/or https://www.linkedin.com/company/bgc-partners.
BGC, BGC Trader, GFI, FENICS, FENICS.COM, Capitalab, Swaptioniser, ColleX, Newmark, Grubb & Ellis, ARA, Computerized Facility Integration, Landauer, Lucera, Excess Space, Excess Space Retail Services, Inc., Berkeley Point and Grubb are trademarks/service marks, and/or registered trademarks/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 and Newmark
Statements in this document and in the financial results press release for the quarter ended December 31, 2017 regarding BGC and Newmark 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 and Newmark undertake 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 and Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors set forth in these filings and any updates to such risk factors contained in subsequent Forms 10-K, Forms 10-Q or Forms 8-K.
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