Citi and Standard Chartered are among the first institutions to actively compress trades with LCH ForexClear.
Banks are trying to encourage their clearing clients to adopt services such as compression to reduce their capital requirements.
Portfolio compression is widely being adopted across the industry to reduce their capital requirements.
Services such as portfolio compression have encouraged banks to stick to OTC derivatives as opposed to trading swap-futures products.
Compression services are increasingly being adopted by banks to reduce derivatives exposures.