TriOptima completes first cross currency swap compression in USD/Turkish Lira
17 December 2014
New York/London – December 17, 2014 TriOptima, a leading provider of OTC derivative post trade risk management services, announces today that 17 financial institutions eliminated $213 billion in the first USD/TRY (Turkish Lira) cross currency swap triReduce compression cycle.
Cross currency swaps are subject to both interest rate and foreign exchange rate fluctuations and are not currently cleared. They increase an institution’s credit and capital costs as well as its settlement risk.
Since cross currency compression began in April 2014, TriOptima has run eight successful triReduce cross currency swap compression cycles in USD/CAD, USD/EUR, USD/GBP, USD/JPY, USD/MXN (Mexican Peso) and USD/ZAR (South African Rand).
Additional cross currency compression cycles are planned in the currencies already offered and in new currencies including Chinese Yuan (CNH), Korean Won (KRW), and Russian Ruble (RUB). triReduce compression cycles can accommodate all transaction types whether they are float/float or fixed/float, resetting and non-resetting.
“Interest in cross currency compression cycles continues to grow,” said Peter Weibel, CEO of triReduce. “Reducing exposure in these transactions relieves operational and counterparty settlement stress and improves capital efficiency.”
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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.