LSEG’s SwapAgent Completes First GBP/USD Compression Run

The London Stock Exchange Group’s (LSEG) Post Trade Solutions has executed its first GBP/USD multilateral compression run at its service for non-cleared OTC derivatives, SwapAgent.  The offering was initially launched with EUR/USD currency pairs in 2024, and the move now marks an expansion of multi-asset post-trade capabilities, with the GBP/USD offering accounting for approximately 75% of SwapAgent’s trading activity. According to a story in The Trade News, the offering is set to address market needs by allowing participants to target the majority of cross currency swaps through direct access to a single, authoritative data store – eliminating third party reliance and streamlining the compression process.  The new offering is also expected to allow participants to reduce risk and optimize their portfolio by using quarterly compression runs with existing currency pairs, as well as achieve compression across their portfolios through targeting the inter-dealer cross currency market serviced by SwapAgent. SwapAgent forms part of LSEG’s post-trade division designed to mitigate risk and drive cost efficiencies and has seen significant developments since the infrastructure was integrated into the exchange, such as sweeping risk into SwapAgent via regular and on-demand counterparty risk optimization runs.