LSEG announced that Post Trade Solutions has completed its GBP/USD multilateral compression run at SwapAgent, the service for the non-cleared derivatives market.
Post Trade Solutions brings together Quantile, Acadia and SwapAgent “to minimise risk, reduce cost, and improve capital efficiency.”
Initially launched in 2024 with EUR/USD currency pairs, the service has now been expanded to “include GBP/USD, accounting for approximately 75% of SwapAgent trading activity in total.”
This development enables participants to “target the majority of cross currency swaps and directly responds to the needs of market participants.”
The service reduces both operational costs and risk by “enabling participants to draw directly from a single, authoritative data store – eliminating reliance on third parties and streamlining the entire compression process.”
By targeting a segment of the inter-dealer cross currency market serviced by SwapAgent, the service “enables compression across a broad portion of participants’ portfolios.”
Participant firms also benefit from “quarterly compression runs with existing currency pairs, such as EUR/USD, supporting firms to regularly reduce risk and optimise their portfolio.”
This collaboration builds on the substantial partnership “between the two services as part of LSEG’s Post Trade Solutions division.”
Together they have delivered a series of market firsts, “including sweeping risk into SwapAgent via regular and on-demand Counterparty Risk Optimisation runs.”
By sweeping bilateral risk into SwapAgent, participants benefit “from standardised infrastructure and can reduce capital requirements by 30-60%.”
Andrew Williams, CEO of Post Trade Solutions, LSEG, said:
‘At Post Trade Solutions, we are continually looking for ways to improve the post trade landscape and enhance our services as the market evolves. Adding multilateral compression runs to currency pairs at SwapAgent that are most demanded by our network provides customers with material gross notional reduction while increasing efficiency. We have already seen good adoption of the service, and we look forward to delivering more compression at SwapAgent as the network grows.’’
Post Trade Solutions brings together Acadia, Quantile and SwapAgent to streamline operations, “reduce risk and improve capital efficiency.”
By connecting with existing cleared infrastructure, they aim to “bring the benefits of clearing to the bilateral space, driving efficiency no matter where customers choose to trade their risk.”
By combining their solutions with continuous innovation they “can streamline workflows and operations, centralise data on open-access platforms, optimise to reduce risk and improve capital efficiency, analyse to simplify regulatory compliance, and advise their community to solve the industry’s most complex challenges.”
Their network includes over 3,000 firms, “including all the top dealer banks, regional banks, buy-side firms and corporates.”
As covered, LSEG (London Stock Exchange Group) is a global financial markets infrastructure and data provider, playing “a vital social and economic role in the world’s financial system.”
With their open approach, trusted expertise and global scale, they enable the sustainable growth and “stability of their customers and their communities.”
They are partners with experience, knowledge and “a worldwide presence in data and analytics; indices; capital formation; and trade execution, clearing and risk management across multiple asset classes. ”
LSEG is headquartered in the United Kingdom, with “significant operations in 65 countries across EMEA, North America, Latin America and Asia Pacific.”
They reportedly employ over “26,000 people globally, more than half located in Asia Pacific.”
