TriOptima offers first ever Precious Metals triReduce compression cycle, eliminating $7.2 billion in notional principal outstanding
19 March 2013
New York / London – March 19, 2013 TriOptima announces that it successfully completed the first triReduce compression cycle for precious metals forwards and swaps, terminating $7.2 billion in notional principal outstandings. Working with six institutions to expand the range of compression activity, firms were able to reduce their gross positions in gold and silver unlocking regulatory capital and reducing collateral requirements.
"In the new regulatory environment it is important to manage capital and collateral resources efficiently," said Mattias Palm, business manager for triReduce Commodities, "We were pleased to support the industry by applying our triReduce concept to precious metals trades. We look forward to future cycles, with additional participants, which will further increase the results".
About triReduce Commodities
Compression services are offered through TriOptima’s triReduce service to OTC market participants with significant two-way flow. With triReduce, participants are able to tear up their existing trades at their own mid mark-to-market valuations avoiding the difficult negotiation process of bilateral termination. Multilateral terminations leverage off the expanded number of participants and result in increased numbers of terminated trades. Compression of OTC derivative trades promotes the efficient use of capital and collateral and contributes to overall financial stability.
TriOptima is the award-winning provider of 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:
- triResolve for proactive reconciliation of OTC derivative portfolios, margin management and dispute resolution
- triReduce for multilateral portfolio compression services across OTC product types
- triBalance for rebalancing counterparty risk exposure between multiple CCPs and bilateral relationships, and
- triQuantify for more accurate and realistic risk analytic models leveraging recent developments in state-of-the-art massively parallel computing devices.
TriOptima, an ICAP Group company, maintains offices in London, New York, Singapore, Stockholm, and Tokyo.
For further information please contact:
Susan Hinko, Global Head of Industry Relations
Tel: + 1 646 744 0410
Candice Adam, Argentus PR
Tel: +44 20 7397 2915