Capitalab Connects to LCH SwapAgent

Capitalab, a division of BGC Brokers LP, an entity within BGC Partners, today announced the Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term and subsequent compression of Capitalab's first swaption margin optimisation 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.

The announcement said that 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.

"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," Gavin Jackson, London-based co-founder of Capitalab, commented on the announcement,

David Bachelier, Singapore-based co-founder of Capitalab, added that Capitalab is continually looking for ways to be more efficient and provide a better service to its clients, and SwapAgent is helping the firm to achieve that.

“Capitalab is pleased to highlight SwapAgent and MarkitSERV support for Capitalab's Interest Rate Option and Cross Currency Swaps compression cycles," he said.

Enhancing efficiency for the derivatives market

"We're delighted to be part of this initiative to further enhance efficiency for the derivatives market. The integration of LCH SwapAgent with these established market infrastructures enables a broader range of market participants to benefit both from the operational and Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term efficiencies of LCH SwapAgent's centralised registration and settlement of bilateral trades. Connecting with Capitalab and MarkitSERV also allows those trades to be included in broad portfolio optimisation and compression cycles, driving down notional outstanding and increasing efficiency for all," Nathan Ondyak, global head of LCH SwapAgent, noted.

Alex Lipensky, head of derivatives funding at Deutsche Bank AG, added that Deutsche Bank has been participating in Capitalab's Initial Margin Optimisation exercises with excellent results, and the integration with SwapAgent for trades executed as part of Capitalab services opens up a significant potential for further Initial Margin Optimisation.

“We look forward to continue working with SwapAgent as a service in this respect in the future," he said.