LONDON and NEW YORK, Oct. 18, 2017 /PRNewswire/ -- Quantile Technologies Limited ("Quantile") has successfully completed its first compression run at LCH, the world's largest clearing house for OTC derivatives. This follows its recent appointment as an Approved Compression Service Provider at LCH's SwapClear service, the first service provider to be given this status in nine years.
Compression of swap portfolios, where large numbers of transactions can be eliminated while preserving the overall risk profile and valuation, improves efficiency by reducing line items and notional-linked capital. The process has strong support from global regulators. Quantile's compression service operates alongside its existing counterparty risk reduction platform for non-cleared derivatives, which in contrast drives initial margin and capital savings for banks, and is available under the AcadiaSoft Quantile Optimisation Service.
"This is an important step forward in risk management for the industry," said Stephen O'Connor, Chairman of Quantile, a leading provider of counterparty risk reduction tools for the derivatives industry. "By enabling a faster, more streamlined process for compression, we are delivering new efficiencies to our clients. We're grateful that this has already generated extremely positive feedback from the major market participants."
"We are delighted to onboard Quantile as an additional compression partner, offering more choice to our members and their clients," said Daniel Maguire, Group COO of LCH. "Compression is an integral part of our ongoing efforts to improve capital efficiencies for market participants, and we are very pleased with the outcome of this first run. We look forward to doing more compression runs together with our mutual customers."
"We welcome Quantile Technologies' innovative solution which increases compression efficiency," said Stuart Bancroft, Managing Director, G10 XVA, at Citi. "The service provides a notionally efficient risk replication of the consolidated cleared portfolio with low operational complexity. We look forward to leveraging the solution to bring incremental notional reduction."
"Not only does this service achieve great notional reduction, but a real differentiator for Quantile is their focus on operational efficiency and the ease of use for their clients," said Lear Janiv, Managing Director at Goldman Sachs, a user of Quantile's compression and optimisation services.
"This was a strong first run with seamless execution," said Boyd Winston, Executive Director - Head of Macro Compression Operations at J.P. Morgan, one of several banks that use Quantile's optimisation services. "It is encouraging to see greater choice in multilateral compression services, which help the participants to efficiently manage the size and risk of their swap portfolios."
Quantile's initial customer focus has been the G15 leading global banks but the firm is now gearing up to expand its dealer footprint, as well as expand into buy-side institutions. Its mission is to deliver market-leading solutions using advanced technology with fully integrated streamlined processing.
Quantile's optimisation technology delivers strategies that reduce counterparty risk between market participants, increasing the efficiency and liquidity of markets, improving returns for our clients and making the financial system safer. Formed in 2015 by a team of experienced derivatives professionals with backgrounds in risk management, clearing, quantitative analysis and trading technology, Quantile is based in London and serves the global community of derivatives users. Quantile is powered by Kx Systems, a division of First Derivatives plc.
Further information on Quantile can be found at www.quantiletechnologies.com
LCH is a group of leading multi-asset clearing houses that provides proven risk management capabilities across a range of asset classes. As demand for robust clearing services continues to grow, LCH is committed to maintaining the highest standards of risk management across all our services.
As the markets' partner, LCH operates an open access model, offering a choice of execution venues, delivering unprecedented choice and efficiencies to the marketplace.
LCH operates clearing houses around the world, with clearing houses incorporated in the UK, France and the United States with additional offices in the Asia Pacific region. It offers clearing services across asset classes including OTC and listed rates; CDS and FX; fixed income; commodities; cash equities and equity derivatives.
LCH is majority owned by London Stock Exchange Group (LSE.L), an international markets infrastructure business that sits at the heart of the world's financial community.
Further information on LCH can be found at www.lch.com
SOURCE Quantile Technologies Limited