Capitalab, in collaboration with Eurex, has successfully executed its second multilateral risk-constrained EURO STOXX 50 options compression cycle.

The cycle included approximately 120,000 listed options contracts traded or 14% of the daily volume and $6 billion notional unwound. Capitalab and Eurex announced their first compression in equity index derivatives in Europe in July 2021, enabling participants to lower capital costs and reduce open positions of derivatives that carry some of the highest cost of capital per unit of notional exposure in the industry.

“The execution of this compression cycle is another milestone in terms of volume of contracts closed and notional unwound. Capitalab, Eurex and participants are working on adding additional features like support for Weeklies and Futures to make cycles even more efficient,” said Olivier Roguez, head of equity sales at Capitalab.

Capitalab, a division of BGC Brokers LP, provides compression services that are designed to bring greater capital and operational efficiency to the global derivatives market. It assists clients in managing the growing cost of holding derivatives, while helping them to meet their regulatory mandates.

Through the Swaptioniser® service for portfolio compression of Interest Rate Swaptions, Interest Rate Swaps, Caps and Floors, Equity options, FX and FX Options, as well as Initial Margin Optimisation service and fully automated trade processing, Capitalab looks to simplify the complexities of managing large quantities of derivatives to promote sustainable growth and lower systemic risk and to improve resiliency in the industry.

The Capitalab brand is part of the Fenics fully electronic family of brands. BGC Brokers LP is authorised and regulated by the UK Financial Conduct Authority and is based in London. BGC Brokers LP is a subsidiary of BGC Partners, Inc. (NASDAQ:BGCP), a leading global brokerage and financial technology company.