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.
ABOUT QUANTILE
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
ABOUT LCH
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
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