Capitalab, a division of BGC Brokers LP, an entity within the BGC Partners, Inc. group of companies, today announced a services agreement with CLS Group (CLS), a market infrastructure delivering settlement, processing and data solutions for the global foreign exchange (FX) market.

Providing innovative and enhanced FX optimisation services to the marketplace, Capitalab’s multilateral compression services will benefit from FX forwards and swaps data direct from CLS in all CLSSettlement-eligible currencies, enhancing the speed and efficiency of FX 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’s London-based co-founder.

Capitalab launches “Capitalab FX, with CLS” for FX Forwards compression https://t.co/0uZ024QeG2 pic.twitter.com/tTSWuqDXPD

— BGC Partners (@bgcpartners) December 4, 2020

“We are delighted to consolidate our presence in FX through our services agreement with CLS, which will enable previously unexplored possibilities. Combining Capitalab’s multi-product technology with CLS data allows us to offer the market new FX solutions and unique optimisation of several risk metrics, including notional, margin and counterparty risks,” commented David Bachelier, Capitalab’s Singapore-based co-founder.

Keith Tippell, Global Head of Product at CLS said, “CLS settlement members continue to focus resources on optimization and risk mitigation. Our unique position at the center of the FX market enables us to collaborate with specialized service providers, like Capitalab, for the benefit of our common client base. 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.”

Source: BGC