TriOptima continues strong compression activities in 1H 2011
19 July 2011
triReduce service eliminates interest rate swaps with a notional value of $22.1 trillion and CDS with a notional value of $3.2 trillion
TriOptima announced that in the first six months of 2011 its triReduce early termination service had eliminated interest rate swaps with a notional value of $22.1 trillion, including cleared swaps in LCH.Clearnet Swapclear. Credit default swaps with a notional value of $3.2 trillion were also compressed during this time period.
“We continue to support our clients in their drive to compress transactions in order to enhance counterparty credit risk and operational risk management as well as minimize capital charges,” said Peter Weibel, CEO of triReduce. “Given the move towards clearing, CDS compression remains relatively strong; and interest rate swap terminations have accelerated again. Working with LCH.Clearnet SwapClear provides good opportunities for shedding transactions and reducing notional principal outstandings.”
Since the introduction of its innovative triReduce service, TriOptima has terminated $130 trillion in IRS notional outstandings and $71.4 trillion in CDS notional outstandings. Full compression statistics are available on TriOptima’s website at: http://www.trioptima.com/resource-center/statistics/triReduce.html
About TriOptima Compression
Compression services are offered through TriOptima’s triReduce service. Utilizing 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. Eliminating trades eliminates costs, credit and operational risk and reduces capital requirements.
TriOptima, an ICAP Group company, is the award-winning provider of OTC derivatives infrastructure services including triReduce, triResolve, and the Global OTC Derivatives Interest Rate Trade Reporting Repository (the Rates Repository).
triReduce, the portfolio compression service for OTC derivative dealers, pioneers technology that eliminates risk and reduces operational and capital costs. Serving over 150 bank and non-bank subscribers worldwide including the major local and global dealers in derivatives, triReduce is a critical tool for maintaining post trade processing efficiency. triReduce offers compression cycles in single name and index CDS swaps worldwide, IRS swaps in 23 currencies and a range of energy derivatives.
triResolve is a network community service that provides counterparty exposure management services including proactive portfolio reconciliation of OTC derivative portfolios, margin call management, and dispute resolution. Used by global dealers, regional banks and buy-side firms, triResolve currently handles 6 million trades representing over 75% of all non-cleared OTC derivative transactions globally. The service benefits trade control, settlement, documentation, collateral and counterparty credit risk functions.
TriOptima 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