LONDON, Jan. 5, 2016
/PRNewswire/ -- BGC Brokers L.P.'s ("BGC Brokers") Capitalab, an
entity within the BGC Partners, Inc. group (NASDAQ: BGCP) today
announced that its Swaptioniser® portfolio compression
service successfully eliminated over EUR 800
billion of Swaption notional in Q4 2015. This service
brings to the market the latest and most advanced solution for
compression and is the first system to provide multilateral
portfolio compression for OTC Swaptions. An important milestone as
the derivatives industry increasingly adopts portfolio compression
practices as a risk mitigation tool; these results are based on the
service's first seven runs of EUR, GBP and JPY Swaption compression
and included more than 10 major banks active in the
over-the-counter (OTC) Swaptions market.
Expanding to other asset classes in the near future, Capitalab
is a key addition to BGC Brokers' offerings, allowing banks and
other financial market institutions to make significant savings in
capital and initial margin by reducing the outstanding gross
notional of derivatives portfolios.
"We are dedicated to providing our clients with state of the art
services and technology that help them navigate the complexities of
a constantly evolving derivatives marketplace. In a heightened
regulatory environment, the ability to compress trades is
instrumental in preserving both capital and liquidity and
minimising operational risk in the industry. Capitalab's successful
launch of the Swaptioniser solution brings to our clients the
benefits of innovative portfolio compression services in a seamless
and effective manner, helping our institutional clients reach
capital and liquidity provisions outlined in regulatory frameworks
such as Basel III," said Philip
Norton, Global Head of e-Commerce, BGC Brokers L.P.
Multilateral Platform
Capitalab's Swaptioniser is a multilateral portfolio compression
service that allows participants to reduce their derivatives
exposures whilst maintaining neutral portfolio risk. The solution
is highly customisable and accommodates the large number of
constraints and models used by options traders.
"Capitalab has produced a well-conceived compression service,
which we have found particularly effective with complex products
such as swaptions. It is critical that dealers manage their
derivatives exposures as efficiently as possible given the
associated capital requirements, and this service has been a
welcome development for the industry," said Luke Kotchie, Managing Director, J.P. Morgan in
London.
Swaptioniser, which completed its first compression of
transactions in September 2015, will
be of interest to any large user of Interest Rate Options.
About Capitalab
Capitalab, a new division of BGC Brokers L.P., is led by a team
of ex-traders and quants from sell-side institutions, Mr
Olivier Alvarez, Mr David Bachelier and Mr Gavin Jackson, who combine together over 30
years' experience in interest rates options trading and
quantitative research. BGC Brokers L.P. is regulated by the
UK Financial Conduct Authority and based in London.
About BGC Partners, Inc.
BGC Partners, Inc. is a leading global brokerage company
servicing the financial and real estate markets. Products include
fixed income securities, interest rate swaps, foreign exchange,
equities, equity derivatives, credit derivatives, commercial real
estate, commodities, futures, and structured products. BGC Partners
also provides a wide range of services, including trade execution,
broker-dealer services, clearing, processing, information, and
other back-office services to a broad range of financial and
non-financial institutions. Through its BGC Trader and BGC Market
Data brands, BGC Partners offers financial technology solutions,
market data, and analytics related to numerous financial
instruments and markets. BGC Partners is the majority-owner of GFI
Group Inc. (OTC: GFIG), a leading intermediary and provider of
trading technologies and support services to the global OTC and
listed markets. Through the Newmark Grubb Knight Frank brand, BGC
Partners offers a wide range of commercial real estate services,
including leasing and corporate advisory, investment sales and
financial services, consulting, project and development management,
and property and facilities management. BGC Partners 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 Partner's common stock trades on the NASDAQ
Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC
Partners 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.
BGC, the BGC logo, BGC Partners, BGC Trader, Capitalab,
Swaptioniser, Newmark, Grubb & Ellis, Grubb and GFI are
trademarks, service marks or registered trademarks/service marks of
BGC Partners, Inc. and/or its affiliates. Knight Frank is a service
mark of Knight Frank (Nominees) Limited.
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