BGC’s Capitalab teams up with CLS Group to enhance FX portfolio optimisation

The partnership will enhance Capitalab’s FX compression services with FX forwards and swaps data from CLS Group.

Capitalab, the FinTech firm operated by interdealer broker BGC Brokers, has entered a services agreement with foreign exchange settlement specialist CLS Group to enhance the data offering of its foreign exchange compression service.

Through the partnership, Capitalab’s compression services will receive data direct from CLS Group from foreign exchange swaps and forwards in currencies eligible on CLSSettlement.

Capitalab provides compression services across interest rate swaptions, interest rate swaps, caps, and floors, equity options, FX and FX Options that are designed to bring greater capital and operational efficiency to the global derivatives market.

CLS Group and Capitalab said that their partnership would offer greater speed and efficiency in foreign exchange portfolio optimisation.

“As highlighted by the Bank for International Settlements’ most recent quarterly review, FX market systemic risks are growing, leading to an increasing need for multilateral optimisation and risk-reduction techniques,” said Gavin Jackson, Capitalab co-founder.

In November, CLS unveiled plans to provide its netting calculation platform, CLSNet, to clients of global FinTech provider Finastra including over 800 corporate and buy-side firms under a new partnership. 

“CLS settlement members continue to focus resources on optimisation and risk mitigation. Our unique position at the centre of the FX market enables us to collaborate with specialised service providers, like Capitalab, for the benefit of our common client base,” said Keith Tippell, global head of product at CLS.

“We are excited to collaborate with Capitalab and, via the combination of their innovation and CLS trade data, help enable capital efficiencies and risk mitigation for market participants.”

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