CAPITALAB IMPROVES RATE OPTIMIZATION WITH SA-CCR AND RWA FOCUS


LONDON, April 26, 2022 /PRNewswire/ — Capitalab, a division of BGC Brokers LP, part of the BGC Partners, Inc. (NASDAQ: BGCP) group of companies, today announced enhancements to its Rate Optimization service allowing clients to optimize several capital parameters simultaneously. Along with optimizing uncleared and cleared initial margin (IM), the service has now successfully included additional measures: risk-weighted capital (RWA) under the internal models method (IMM) and standardized approach for counterparty credit risk (SA-CCR) leverage on exposure.

Capitalab’s rate optimization service has been running regularly for October 2017, multilaterally reducing delta, vega and curvature counterparty risk and significantly reducing both uncleared IM and central clearing counterparty (CCP) cleared IM. Clients define their optimization constraints, taking into account variables such as counterparty risk, market risk and Credit Support Annex (CSA) terms, as the service facilitates automated transaction processing.

Jonathan MullingsHead of Sales and Business Development at Capitalab, said, “We are excited to bring this latest innovation to our post-trade optimization service. RWA (IMM) capital in conjunction with SA-CCR leverage and initial margin exposures deliver exciting results for our clients. We’ve found that targeting multiple capital metrics simultaneously is the way to effective savings overall, while optimizing for one metric in isolation can make other metrics worse. »

Capitalab hosts bi-weekly rate optimization rounds in G4 currencies and will include SA-CCR and RWA (IMM) optimization in future cycles.

About Capitalab

Capitalab, a division of BGC Brokers LP, provides compression services designed to bring greater capital and operational efficiency to the global derivatives market. It helps clients manage the rising cost of holding derivatives, while helping them meet their regulatory mandates. Thanks to the Swaptioniser® (for portfolio compression of interest rate swaptions, interest rate swaps, caps and floors, equity options, currencies and foreign exchange options), as well as the Optimization™ service , Capitalab seeks to simplify the complexities of managing large amounts of derivatives in order to promote growth and reduce systemic risk and improve industry resilience. The Capitalab brand is part of the Fenics family of all-electronic brands. BGC Brokers LP is authorized 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), one of the world’s leading brokerage and fintech companies.

About BGC Partners, Inc.

BGC Partners, Inc. (“BGC”) is a leading global brokerage and fintech company. BGC, through its various subsidiaries, specializes in the brokerage of a wide range of products, including fixed income securities (rates and credit), currencies, equities, energy and commodities, maritime transport and futures contracts. BGC, through its various subsidiaries, also provides a wide variety of services, including trade execution, brokerage, clearing, trade compression, post-trade, information and others back-office services to a wide 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 fintech 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 clients include many of the world’s largest banks, brokers, 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 symbol “BGCP”. BGC is led by the 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 on https://twitter.com/bgcpartners, https://www.linkedin.com/company/bgc-partners and or http://ir.bgcpartners.com/Investors/default.aspx.

Discussion of forward-looking statements regarding BGC

Statements contained herein regarding BGC that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ materially from those contained in the forward-looking statements. These include statements regarding 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 significantly, from what is currently expected. Except as required by law, BGC assumes no obligation to update forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ materially from those contained in the forward-looking statements, see BGC’s filings with the Securities and Exchange Commission, including, but not limited to, factors statement and the special note on forward-looking statements. Forward-looking information set forth in these documents and any updates to these 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 contacts:
Jason Chryssicas
+1 212-610-2426

SOURCEBGC Partners, Inc.

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