TriOptima completes first triReduce compression cycle for cleared Mexican Peso swaps at CME Group
08 August 2016
London, New York - 8 August 2016 – TriOptima, a leading provider of OTC derivatives post-trade risk management services and infrastructure, announces today that 11 CME Group IRS clearing members eliminated 12.5 trillion MXN ($664 billion USD)* notional outstanding in the first triReduce multilateral compression cycle for cleared Mexican Peso (MXN) interest rate swaps (IRS).
Over 35% of the cleared MXN notional principal outstanding in CME was eliminated in this cycle, the first ever compression in a cleared Latin American currency.
TriOptima has offered compression for uncleared MXN trades since 2007, and has completed 20 MXN cycles including this most recent one for CME Group IRS clearing members. TriOptima has also run six triReduce compression cycles in uncleared Brazilian Real (BRL) and Colombian Peso (CLP).
TriOptima and CME Clearing have collaborated on six other compression cycles for IRS clearing members in USD and EUR, with additional currencies planned. The total gross notional outstanding eliminated in these seven joint cycles is $15.8 trillion.
“Mexican Peso swap clearing at CME Group is an exciting innovation we’ve delivered for our customers, and we’re pleased to work with TriOptima to deliver even greater capital efficiencies to the marketplace,” said Sunil Cutinho, President of CME Clearing. “With bilateral swaps facing higher capital costs and the implementation of uncleared margin rules starting September 1, the combination of voluntary clearing and multilateral compression provides significant value to our clients.”
“TriOptima continues to work closely with the CME Clearing to expand the range of compression services offered to their IRS clearing members and others,” said Peter Weibel, CEO of triReduce. “Eliminating trades is an important tool for improving capital efficiencies and operational processes.”
* TriOptima reports notionals as double counted for cleared trades, consistent with BIS reporting, and single counted for uncleared trades. CME Group reports compression notionals as single counted, to align with the volume generated and reduction in open interest.
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, manage disputes, validate repository data, and deliver an automated margin management solution; 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.