Capitalab, a division of BGC Brokers LP, an entity within BGC Partners, announced the execution and subsequent compression of Capitalab’s first swaption margin optimization trades leveraging LCH SwapAgent, a service for the non-cleared derivatives market. As part of Capitalab’s leading Rates Initial Margin Optimisation service, swaption notional was created between Nomura and Deutsche Bank and processed by LCH SwapAgent.
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The package comprised over a thousand bilateral swaptions and cleared swaps and was successfully compressed in Capitalab’s subsequent margin optimisation cycle, with full straight-through processing provided via MarkitSERV.
LCH SwapAgent trades are the latest products to be eligible for Capitalab’s offering for Initial Margin Optimisation. This expansion arrives with the news of Capitalab’s largest month ever for its interest rate margin optimisation service, with over US$5 billion of IM savings for its global banking clients.
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Gavin Jackson, London-based co-founder of Capitalab, commented on today’s announcement, “We are delighted to add LCH SwapAgent trades to our offering. The common CSA that SwapAgent trades utilise is helpful in allowing participants to relax constraints in the optimisation and achieve even greater IM reduction.”
David Bachelier, Singapore-based co-founder of Capitalab, added, “We are continually looking for ways to be more efficient and provide a better service to our clients, and SwapAgent is helping us to achieve that. Capitalab is pleased to highlight SwapAgent and MarkitSERV support for Capitalab’s Interest Rate Option and Cross Currency Swaps compression cycles.”
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