Asia Pacific institutions turn to portfolio reconciliation ahead of regulatory changes
14 October 2014
TriOptima’s triResolve service gains 78 clients in region
New York/London, 10 October 2014 – Impending regulatory changes in Asia Pacific (APAC) have prompted leading financial institutions to proactively reconcile their portfolios and manage their collateral disputes, according to TriOptima, leading provider of OTC derivative post trade services.
TriOptima reports that 78 firms in APAC are proactively using its triResolve portfolio reconciliation service, in anticipation of regional regulatory changes. The number of firms using triResolve has grown 350% since 2012.
Market participants have begun to reconcile regularly to accommodate their US and European counterparties who are required to reconcile their portfolios and manage their collateral disputes in a timely manner. Proactive portfolio reconciliation is an important risk management tool that many firms are adopting as best practice.
“Although we are not currently required by our regulations to reconcile our portfolios, we find it to be best practice and very efficient,” said Brendan Byrne, Head of Collateral Management and OTC Reform at Suncorp Bank in Australia. “triResolve is the perfect tool to manage this process especially since all of our counterparties are using the service already. It also assists our counterparties with their regulatory obligations, particularly in Europe and the US.”
triResolve users in APAC cover a wide range of customer types including banks, insurance companies, securities firms, energy companies, hedge funds, investment managers, and sovereign wealth funds and government treasuries in Australia, Hong Kong, Japan, Singapore, South Korea and Taiwan.
“We see significant potential for more growth in the region as regulators continue to collaborate with IOSCO on setting risk mitigation standards,” said Yutaka Imanishi, CEO of TriOptima Asia Pacific. “The introduction of two-way variation margin in 2015 will necessitate firms adopt a robust reconciliation and dispute resolution process like that offered by triResolve.”
Currently triResolve has more than 1200 firms using the service globally, reconciling over 75% of all global OTC derivative trades. triResolve also reconciles cleared and exchange-traded transactions as well as repos and securities lending transactions. Most recently TriOptima extended the triResolve service to reconcile unmatched trade data submitted to the newly-established swap data repositories in the US and Europe.
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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.