LSEG has announced today that Post Trade Solutions successfully completed its first polymer GBP/USD compression on Swapagent, the service for the purchase of non -cleared derivatives.
Post -commercial solutions bring about Quantile, Acadia and Swapagent to minimize risk, reduce costs and improve capital performance.
Initially it started in 2024 with EUR/USD currencies, the service has now expanded to include GBP/USD, representing a total of 75% of the transaction as a whole. This development allows participants to target the majority of cross -compromises and respond immediately to the needs of market participants.
The service reduces both operating costs and risk, allowing participants to draw directly from a single, valid data store – eliminating third -party dependence and rationalizing the entire compression process. With the targeting of a section of the Market of Crossing Legislation between Dealer served by Swapagent, the service allows to be squeezed in a wide part of participants’ portfolios.
Participating companies also benefit from quarterly compression with existing currency pairs, such as EUR/USD, supporting businesses regularly reduce the risk and optimize their portfolio.
This collaboration is based on substantial cooperation between the two services as part of the LSEG Post Trade Solutions section. Together they have delivered a number of first market principles, including sweeping risk to swapagent through normal and at risk of counterparty routes. With the sweeping bilateral risk in Swapagent, participants benefit from standard infrastructure and can reduce capital requirements by 30-60%.
Andrew Williams, Managing Director of Post Trade Solutions, LSEG, said:
“At Post Trade Solutions, we are constantly looking for ways to improve the landscape after trade and strengthen our services as the market evolves. The addition of polymer compression is performed in pairs of coins to the Swapagent required by our network it provides customers with a medium -sized fictitious reduction while increasing efficiency. We have already seen a good adoption of the service and look forward to providing more compression to Swapagent as the network grows.