CAPITALAB ENHANCES RATES OPTIMISATION WITH SA-CCR AND RWA FOCUS
Capitalab, a division of BGC Brokers LP, announced enhancements to its Rates Optimisation service on April 26, 2022. The service now includes the optimisation of Risk Weighted Asset (RWA) capital under Internal Models Method (IMM) and SA-CCR leverage exposure, alongside non-cleared and cleared Initial Margin (IM). This development aims to reduce counterparty risks and improve capital efficiency for clients. Capitalab has been operational since October 2017, providing biweekly optimisation cycles across G4 currencies. The company focuses on lowering the costs of holding derivatives while helping clients meet regulatory requirements.
- None.
- No significant financial metrics or projections were disclosed in the PR.
LONDON, April 26, 2022 /PRNewswire/ -- Capitalab, a division of BGC Brokers LP, an entity within the BGC Partners, Inc. (NASDAQ: BGCP) group of companies, announced today enhancements to its Rates Optimisation service enabling clients to optimise multiple capital metrics simultaneously. Alongside the optimisation of non-cleared and cleared Initial Margin (IM), the service has now successfully included additional metrics: Risk Weighted Asset (RWA) capital under the Internal Models Method (IMM) and Standardised Approach for Counterparty Credit Risk (SA-CCR) leverage exposure.
The Capitalab Rates Optimisation service has been running routinely since October 2017, multilaterally shrinking delta, vega and curvature counterparty risks and impactfully reducing both non-cleared IM and cleared IM at the Central Clearing Counterparty (CCP). Clients set their optimisation constraints, accommodating variables such as counterparty risk, market risk and Credit Support Annex (CSA) terms, with the service facilitating automated trade processing.
Jonathan Mullings, Head of Sales and Business Development at Capitalab, said, "We are delighted to bring this latest innovation to our post-trade optimisation service. Targeting RWA (IMM) capital in conjunction with SA-CCR leverage and initial margin exposures allows exciting results to be achieved for our clients. We have found that targeting multiple capital metrics simultaneously is the way to deliver efficient savings holistically, while optimising for any one metric in isolation may worsen other metrics."
Capitalab hosts biweekly rates optimisation cycles across G4 currencies and will include SA-CCR and RWA (IMM) optimisation in future cycles.
Capitalab, a division of BGC Brokers LP, provides compression services that are designed to bring greater capital and operational efficiency to the global derivatives market. It assists clients in managing the growing cost of holding derivatives, while helping them to meet their regulatory mandates. Through the Swaptioniser® service (for portfolio compression of interest rate swaptions, interest rate swaps, caps and floors, equity options, FX and FX options), as well as the Optimisation™ service, Capitalab looks to simplify the complexities of managing large quantities of derivatives to promote sustainable growth and lower systemic risk and to improve resiliency in the industry. The Capitalab brand is part of the Fenics fully electronic family of brands. BGC Brokers LP is authorised and regulated by the UK Financial Conduct Authority and is based in London. BGC Brokers LP is a subsidiary of BGC Partners, Inc. (NASDAQ: BGCP), a leading global brokerage and financial technology company.
BGC Partners, Inc. ("BGC") is a leading global brokerage and financial technology company. BGC, through its various affiliates, specializes in the brokerage of a broad range of products, including fixed income (rates and credit), foreign exchange, equities, energy and commodities, shipping, and futures. BGC, through its various affiliates, also provides a wide variety of services, including trade execution, brokerage, clearing, trade compression, post-trade, information, and other back-office services to a broad range of financial and non-financial institutions. Through its brands, including FMX™, Fenics®, Fenics Market Data™, Fenics GO™, BGC®, BGC Trader™, Capitalab®, and Lucera®, BGC offers financial technology solutions, market data, and analytics related to numerous financial instruments and markets. BGC, BGC Trader, GFI, Fenics, FMX, Fenics Market Data, Capitalab, and Lucera are trademarks/service marks and/or registered trademarks/service marks of BGC and/or its affiliates.
BGC's customers include many of the world's largest banks, broker-dealers, investment banks, trading firms, hedge funds, governments, corporations, and investment firms. BGC's Class A common stock trades on the Nasdaq Global Select Market under the ticker symbol "BGCP". BGC is led by Chairman of the Board and Chief Executive Officer Howard W. Lutnick. For more information, please visit http://www.bgcpartners.com. You can also follow BGC at https://twitter.com/bgcpartners, https://www.linkedin.com/company/bgc-partners and/or http://ir.bgcpartners.com/Investors/default.aspx.
Statements in this document regarding BGC that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the effects of the COVID-19 pandemic on the Company's business, results, financial position, liquidity and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, BGC undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see BGC's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.
Media Contact:
Harjeet Singh
+44 207-894-8829
Investor Contact:
Jason Chryssicas
+1 212-610-2426
View original content to download multimedia:https://www.prnewswire.com/news-releases/capitalab-enhances-rates-optimisation-with-sa-ccr-and-rwa-focus-301532702.html
SOURCE BGC Partners, Inc.
FAQ
What enhancements did Capitalab announce on April 26, 2022?
How long has Capitalab's Rates Optimisation service been operational?
What is the purpose of Capitalab's Rates Optimisation service?
Who is the parent company of Capitalab?
