Capitalab, a division of BGC Brokers LP, an entity within the BGC Partners, Inc. (NASDAQ: BGCP) group of companies, today announced the execution of Capitalab’s first Rates Initial Margin (IM) Optimisation exercise incorporating cleared IM at multiple Central Clearing Counterparties (CCPs). This run involved 10 leading market participants and was conducted as an extension to Capitalab’s existing multilateral Rates IM Optimisation service.
“Capitalab continues to innovate at a fast pace, bringing new efficiencies to the capital markets. We are delighted to add multi-CCP runs to our portfolio of optimisation services, extended further to help buy-side with both the effect of Uncleared Margin Regulation and margin across multiple CCPs,” said Gavin Jackson, Capitalab’s London-based co-founder.
“We are delighted to confirm our new multi-CCP IM Optimisation service has gone live successfully with 10 major players of the EUR Interest Rates market. We believe this is the first time Initial Margin has been optimised across multiple clearinghouses, in a multilateral, orderly and controlled fashion,” commented David Bachelier, Capitalab’s Singapore-based co-founder.
The inaugural multi-CCP IM Optimisation execution follows Capitalab’s largest non-cleared margin optimisation exercise on record earlier this month, with $3 billion of margin reduced multilaterally in April 2019.