London based Capitalab, an entity within BGC Partners, Inc. (NASDAQ: BGCP) announced that it has successfully launched its multilateral portfolio compression service for FX Options as well as for Interest Rate Caps and Floors.
Since June 2016, five FX Options compression runs have been executed, in USD/JPY and EUR/USD, with the participation of respectively five and seven major FX Option dealers.
In the last three Interest Rate Options compression runs organised by Capitalab, participants have also included Caps and Floors, together with Swaptions.
Combining products in the same compression cycle is proving to have a positive impact on efficiency. Caps and Floors – options on Libor and Euribor forward rates – are known to be capital intensive, because of their large notionals.
Gavin Jackson, Co-Founder of Capitalab said
With these milestones, we continue to empower clients with innovative services across a number of critical derivatives products, now including OTC FX Options and Interest Rate Caps and Floors.