The efficient management of counterparty credit risk exposure has become a key consideration for regulators and derivative market participants. This has resulted in:

  • Increased incentives for active counterparty risk management via multilateral counterparty risk optimisation cycles
  • Clearing volumes increasing, particularly in Rates and FX markets
  • Derivatives end-users facing higher trading costs
  • More restrictive Credit Support Annexes (CSAs)

These have increased the costs of trading derivatives and reduced participants’ ability to utilise inventory as derivatives collateral. Neglecting to consider the overall impact of counterparty risk and margin requirements across bilateral and CCP counterparties can result in higher funding costs, reduced profitability and greater systemic risk.


Capitalab provides an integrated bilateral and cleared multilateral margin & capital optimisation solution across OTC and listed derivatives.

Our leading optimisation algorithms allow our clients to reduce their margin and capital requirements significantly by utilising:

  • Multilateral offsets
  • Choice of clearinghouse
  • Settled-to-market (STM) vs collateralised-to-market (CTM) accounting

Capitalab operates regular multilateral optimisation cycles, maintaining each client’s market risk profile whilst simultaneously reducing counterparty risk, RWAs, margin requirements and freeing-up capital.

Leading optimisation algorithms allow our clients to reduce capital & funding costs associated with:

  • Initial margin requirements – bilateral and cleared
  • Standardised Approach for Counterparty Credit Risk (SA-CCR) exposure
  • Risk Weighted Assets (RWA) – via the Standardised Approach (SA) and Internal Models Method (IMM)

Capitalab has eliminated hundreds of $-billions of margin requirements for its global client base.


Capitalab has been an innovator in optimising margin and SA-CCR exposure for bilateral trading and across multiple clearinghouses. Capitalab optimises using a wide range of products and asset classes:


Swaptions, Cleared Swaps, Cross Currency Basis Swaps


FX Options, FX Forwards, Non-Deliverable Forwards


Total Return Swaps, Total Return Futures, Equity Options & Futures