The Gateway to Algorithmic and Automated Trading

Quantile launches LCH compression service

First Published 18th October 2017

London and New York - Quantile Technologies has completed its first compression run at LCH, the clearing house for OTC derivatives. This follows its recent appointment as an Approved Compression Service Provider at LCH's SwapClear service, the first service provider to be given this status in nine years.

Compression of swap portfolios, where large numbers of transactions can be eliminated while preserving the overall risk profile and valuation, improves efficiency by reducing line items and notional-linked capital. Quantile's compression service operates alongside its existing counterparty risk reduction platform for non-cleared derivatives, which in contrast drives initial margin and capital savings for banks, and is available under the AcadiaSoft Quantile Optimisation Service.

"We are delighted to onboard Quantile as an additional compression partner, offering more choice to our members and their clients," said Daniel Maguire, Group COO of LCH. "Compression is an integral part of our ongoing efforts to improve capital efficiencies for market participants, and we are very pleased with the outcome of this first run. We look forward to doing more compression runs together with our mutual customers."

Quantile's initial customer focus has been the G15 leading global banks but the firm is now gearing up to expand its dealer footprint, as well as expand into buy-side institutions. Its mission is to deliver market-leading solutions using advanced technology with fully integrated streamlined processing.