Capitalab and SGX target listed option efficiencies

Volumes down fotolia
By Ross Lancaster
26 Jun 2019

Capitalab, the compression unit of interdealer broker BGC Partners, has begun to offer compression for Nikkei 225 options in partnership with SGX.

The service is targeted at reducing the capital cost of listed options, which create some of the highest capital costs per unit of notional exposure for market participants. Critics of the current exposure method (CEM) used to calculate those costs say that CEM does not sufficiently recognise the ...

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