TriOptima to Offer Multilateral Compression for CME Group Cleared Trades
12 March 2015
New York/London, 12 March 2015 – TriOptima, leading provider of OTC derivatives post trade risk services, announces today that it has entered into arrangements with CME Group to enable TriOptima to offer triReduce risk-constrained multilateral compression for interest rate swaps (IRS) to house accounts of CME Group IRS clearing members.
Early in the second half of 2015, CME Group IRS clearing members will be able to compress their US dollar dealer-cleared trades through triReduce in their proprietary accounts. In subsequent months, additional currencies will be added for dealer-cleared IRS based on clearing member interest.
“We’re pleased to work with TriOptima so that our dealer bank members will have the opportunity to use triReduce compression as they focus on reducing line items and cleared gross notionals to improve leverage ratios under new regulatory standards,” said Sunil Cutinho, President of CME Clearing. “With this step, we are able to continue to deliver the most capital efficient clearing solutions available.”
“We are delighted to be working with CME Group to deliver triReduce compression to its clearing members as we continue our efforts to enhance the industry’s post trade infrastructure,” said Peter Weibel, CEO of triReduce. “As reported in the January 29th ISDA study, the industry’s efforts to reduce outstandings have contributed to a meaningful decline in the notional outstanding in interest rate derivatives, and triReduce has been a major factor in that achievement.”
Currently triReduce offers compression in cleared and uncleared interest rate swaps (including FRAs and Overnight Index Swaps), cross currency swaps, credit derivatives and commodity swaps. Inflation swap and FX forward cycles will be introduced in 2015.
*ISDA OTC Derivatives Market Analysis: Interest Rate Derivatives, January 29, 2015
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 and validate repository data; 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.