TriOptima captures 90% of collateralized OTC derivatives on triResolve as ISDA reports daily reconciliation of OTC portfolios grows for both large and small firms
28 June 2012
TriOptima announced that its counterparty exposure management service, triResolve, regularly reconciles 6.3 million OTC derivative trades representing 90% of the collateralized OTC derivatives market. In its recently-published ISDA Margin Survey 2012, respondents indicated that daily reconciliations increased from 31% to 47% for all firms, and from 61% to 71% for large firms primarily due to adoption of the triResolve service.
Since its launch in 2006, triResolve has been widely-adopted by a broad cross section of market participants including 200 global dealers, regional institutions, asset servicers, energy trading houses, asset managers, and buy side institutions.
As a centralized platform capturing 90% of the collateralized OTC derivative population, triResolve plays a critical role in the increasingly important collateral management process from reconciliation through the stages of exception management workflow enabling users to identify and resolve issues and disputes on the centralized platform.
Over 5.6 million trades across OTC derivative asset classes and product structures are reconciled on a daily basis on triResolve in response to current commitments to regulators for daily reconciliations, as well as proposed and anticipated rules in the US under Dodd-Frank and in Europe under EMIR requiring proactive reconciliation by market participants. A further 700,000 trades are reconciled on a less frequent basis, such as weekly or monthly.
triResolve's adoption by a significant cross-section of the buy-side community including BlueMountain Capital Management and CQS, regional institutions like DBS Bank and the "Big Six" Canadian banks and all major dealer institutions underscores the benefits of its network community structure and its leadership position in the industry.
"While the foundation of triResolve is its extraordinarily successful reconciliation functionality, we have leveraged that expertise beyond reconciliation to dispute resolution and margin management," said Raf Pritchard, CEO of triResolve. “Our users have also been quick to expand the triResolve application to other areas of their business including reconciliation of cleared trades, repo and stock lending trades, collateral positions and even futures trades. triResolve will continue to develop solutions to the challenges faced by our clients in the continuously changing regulatory and business environment.”
TriOptima, an ICAP Group company, is the award-winning provider of OTC derivatives infrastructure services including triResolve, triReduce, and the recently-launched triBalance.
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 200 firms including all global dealers, regional banks, asset servicers, and buy-side firms, triResolve regularly reconciles nearly 7 million trades representing over 90% of all collateralized OTC derivative transactions globally. The service benefits trade control, settlement, documentation, collateral and counterparty credit risk functions.
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 25 currencies and a range of energy derivatives.
triBalance, TriOptima’s latest post trade service innovation facilitates proactive counterparty risk management by rebalancing counterparty risk exposure between multiple CCPs and bilateral relationships (in Rates, Credit and Commodities) enabling an efficient use of capital and collateral and ultimately reduce systemic risk.
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