TriOptima and SwapClear eliminate 20% of interdealer notional outstanding in cleared Canadian Dollar interest rate swaps
08 October 2015
New York/London – 08 October, 2015 – TriOptima announces today that 18 participants eliminated $1.6 trillion Canadian Dollar (CAD) in LCH.Clearnet’s SwapClear. This represents 20% of the interdealer CAD notional outstanding in CAD cleared interest rate swaps in the clearinghouse (CCP).
“Our last two cycles have eliminated $3.3 trillion CAD in outstanding CAD interest rate swaps in SwapClear , contributing to a further reduction in systemic risk for the market and regulatory capital for individual institutions,” said Michael Modlock, Head of triReduce North America. “We continue to see greater compression possibilities as unlinking trades in the CCP provides a larger pool of eligible swaps for compression.”
Currently TriOptima and LCH.Clearnet’s SwapClear offer compression cycles for 13 currencies: Australian Dollar (AUD), Canadian Dollar (CAD), Swiss Franc (CHF), Euro (EUR), British Sterling (GBP), Hong Kong Dollar (HKD) Hungarian Forint (HUF), Japanese Yen (JPY), New Zealand Dollar (NZD), Polish Zloty (PLN), Swedish Kroner (SEK), US Dollar (USD), South African Rand (ZAR).
As clearing-houses unlink trades from the original counterparty to create “unlinked trades,” dependency on the participation of other clearing members is reduced, resulting in a larger pool of trades eligible for compression.
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 integrated margin management solution; triBalance to manage cleared and bilateral counterparty risk; and triCalculate to measure and analyze counterparty risk.
For more information go to www.trioptima.com.
ICAP is a leading markets operator and provider of post trade risk mitigation and information services. The Group matches buyers and sellers in the wholesale markets in interest rates, credit, commodities, FX, emerging markets and equity derivatives through voice and electronic networks. Through our post trade risk and information services we help our customers manage and mitigate risks in their portfolios. For more information go to www.icap.com.