LSEG’s Post Trade Solutions has completed its first multilateral compression run in GBP/USD at SwapAgent, expanding the service beyond its initial EUR/USD scope. The move brings the compression offering in line with the currency pairs that account for the bulk of trading activity on the platform, explains LSEG in a press release.
The GBP/USD addition follows the 2024 launch of multilateral compression at SwapAgent, a service supporting the non-cleared derivatives market. According to LSEG, the two currency pairs now cover approximately 75 per cent of SwapAgent’s interdealer activity.
By operating on SwapAgent’s shared infrastructure, the compression service allows participants to draw from a centralised data source, rather than relying on external vendors. This setup is intended to streamline the process and reduce both operational risk and cost. The compression runs target risk within portfolios already handled by SwapAgent, offering an additional tool for firms to manage exposures in the non-cleared space.
Compression in EUR/USD continues on a quarterly basis, and GBP/USD is expected to follow a similar cadence. Regular cycles enable firms to maintain risk reduction and capital efficiency over time.
The service is part of LSEG’s broader Post Trade Solutions unit, which brings together Quantile, Acadia and SwapAgent. Previous developments from the group include the integration of counterparty risk optimisation tools that move bilateral risk into SwapAgent, providing a standardised structure aimed at reducing capital requirements.
The GBP/USD launch comes in response to what LSEG describes as strong demand from market participants. With the core currency pairs now supported, the focus will likely shift to growing adoption and expanding compression volumes across the network.
