The LSEG’s PTS group executed its first GBP/USD multilateral compression run via SwapAgent.
Post Trade Solutions (PTS), part of the markets division of the London Stock Exchange Group (LSEG), reports that it has expanded its multilateral compression run service to include its most popular pairing — the British Pound (GBP)/ U.S. Dollar (USD) — to be executed via LCH SwapAgent, a service provider for non-cleared, over-the-counter (OTC) derivatives.
The first such transaction also involved LSEG providers Quantile and Acadia in addition to SwapAgent, which offers processing, margining, and settlement for non-cleared derivatives. Expanding the compression run service to include GBP/USD pairing, accounts for “approximately 75 percent of SwapAgent trading activity in total,” officials say.
The GBP/USD service is intended to reduce “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,” officials add.
Participant firms can also benefit from quarterly compression runs with existing currency pairs, such as EUR/USD, helping firms reduce risk and optimize their portfolio regularly, officials say.
“We have already seen good adoption of the service, and we look forward to delivering more compression at SwapAgent as the network grows,’’ says Andrew Williams, CEO of PTS, LSEG, in a prepared statement. The PTS network includes more than 3,000 firms, including dealer banks, regional banks, buy-side firms, and corporates.
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