Banks save €3.5bn in swaptions compression drive

Capitalab removes €1.3 trillion notional, cutting capital requirements

Euro compression
Multilateral compression has eased the pressure on dealers

March 11, 2016: Updated to clarify that swaptions compression has helped banks reduce their leverage ratio exposure by €3.5 billion.

BGC Partners-owned Capitalab's multilateral swaptions compression service has generated around €3.5 billion ($3.84 billion) of leverage exposure reductions for its bank clients over the past six months, according to the firm's co-founders.

London-based Capitalab, which has 24 bank clients, has compressed €1.3 trillion of euro, sterling and yen swaptions notional si

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: