TriOptima compression exceeds $750 trillion in eliminated notional principal
14 March 2016
Boca Raton, New York, London – 14 March, 2016, TriOptima, an award-winning post trade infrastructure provider, announces today that market participants have eliminated more than $750 trillion in notional principal outstanding using triReduce, its risk-constrained, multilateral compression service for OTC derivatives, established in 2003.
Since launch, more than 210 financial institutions worldwide have participated in this significant risk-reducing achievement which includes compression across a broad spectrum of products: cleared and uncleared interest rate products in 27 currencies, credit default swaps, commodity swaps, inflation swaps, cross currency swaps, and FX forwards.
Currently TriOptima delivers triReduce compression for cleared trades in collaboration with leading clearinghouses (CCPs) around the globe. TriOptima also offers triReduce to CLS members for FX forwards.
Reducing OTC derivative outstanding notional amounts is a major contributor to achieving the leverage ratio goals of individual institutions and to enhancing stability in the financial markets. In its most recent global OTC derivatives market statistics, the BIS reported that interest rate notionals fell 23% between December 2014 ($563.3 trillion outstanding) and June 2015 ($434.7 trillion outstanding).¹“The recent dramatic surge in multilateral compression is a direct result of the collaboration between TriOptima, market participants and clearinghouses around the globe, as well as CLS,” said Peter Weibel, CEO of triReduce. “The positive effect of compression is clearly reflected in the declining outstanding notional amounts reported by the BIS. We are planning to introduce triReduce compression cycles in more CCPs later this year and will continue the expansion of our catalogue of compression products.”
¹ Table D5, BIS Semiannual OTC Derivatives Statistics; 6 March 2016
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.