TriOptima and LCH.Clearnet members reduce notional outstanding by $114 trillion since December 2013; $302 trillion since 2009
05 June 2014
New York/London, June 5 2014 - TriOptima, provider of OTC derivative post trade services, today announces that since the resumption of triReduce compression cycles within LCH.Clearnet’s SwapClear service in December 2013, members have eliminated $114 trillion in notional principal. This brings the cumulative total of notional compressed by TriOptima and SwapClear to $302 trillion.
Lowering gross notional exposure contributes to bringing an institution’s leverage ratio in line with regulatory expectations, an important goal for banks. Trade compression cycles help ensure post-trade efficiency; and running regular cycles in a range of currencies reduces both the gross notional and the number of outstanding OTC derivative transactions in the clearing house.
“SwapClear members benefit significantly from compression,” said Daniel Maguire, global head of SwapClear. “We began providing the service in 2009 and, since then, new capital requirements have brought even greater incentives for banks to reduce the number of trades on their books. We look forward to continuing to reduce notional outstanding and drive market efficiencies through regular compression cycles.”
There have been 16 compression cycles in EUR, GBP, JPY and USD interest rate swaps with 40 participants joining some or all of them since December 2013. Cycles are scheduled weekly, and additional currencies cleared in LCH.Clearnet’s SwapClear will be added to the schedule this year. AUD and CHF cycles were offered for the first time in May.
“The triReduce multilateral algorithmic solution is uniquely structured to optimize compression for a large number of participants simultaneously which is the most efficient way to reduce portfolio exposures,” said Peter Weibel, CEO of triReduce.
Since the launch of triReduce in 2003, OTC derivative market participants have eliminated more than $476 trillion in notional principal outstanding using the service to terminate both cleared and uncleared trades across a broad spectrum of products. triReduce cycles include cleared interest rate swaps and uncleared interest rate swaps in 27 currencies, credit default index and single name swaps and commodity swaps.
For further information, please contact:
Susan Hinko, Head of Industry Relations
Tel: + 1 646 744 0410
Candice Adam, Argentus PR
Tel: +44 207 397-2915
TriOptima is the award-winning provider of post trade risk management services and infrastructure for OTC derivatives. Focused on reducing costs, eliminating operational and credit risk, improving counterparty exposure management, and reducing systemic risk, TriOptima offers a range of services: triReduce to reduce swap inventory and counterparty risk; triResolve to reconcile OTC derivative portfolios and manage disputes; triBalance to manage cleared and bilateral counterparty risk and triCalculate to measure and analyze counterparty risk.
TriOptima, an ICAP Group company, maintains offices in London, New York, Singapore, Stockholm, and Tokyo.