Capitolis, a company helping to create safer and more vibrant capital markets, has announced the acquisition of Capitalab, a leader in Rates Portfolio Compression and Margin Optimization, from BGC Group for a purchase amount of $46 million. This deal will enable Capitolis, a market leader in the optimization and compression space, to offer more solutions to the industry and unlock additional innovation to address emerging client needs.

The deal also follows a period of rapid growth for Capitolis, in which the company launched multiple new products and experienced strong network expansion over the past year. And the addition of Capitalab expands the company's growing network of the world's most important financial institutions.

It creates opportunities to bring in more market participants through Capitalab's strong footprint in Rates Portfolio Compression and Margin Optimization. Capitolis will build on Capitalab's deep domain expertise and extensive client relationships. So far, Capitalab has compressed a gross notional amount of over $10 trillion of options contracts.

Capitalab founder and CEO Gavin Jackson will join the Capitolis executive team. This deal follows the recent investment in Capitolis by major global financial institutions, including Citi, Morgan Stanley, State Street, and UBS, and the company's 2021 acquisition of LMRKTS.

KEY QUOTES:

"Portfolio compression and margin optimization are extremely important to the capital markets and, when properly executed, truly help the financial system and its participants. Capitalab's highly innovative technology complements our existing suite of award-winning solutions and together we will create a 'one-stop shop' for compression. We look forward to welcoming the team and believe that together we can take their unique offering to the next level."