TriOptima collaborates with industry to reduce 25% of iTraxx and 56% of CDX Index Tranche legacy notionals

29 October 2013

New York / London – October 29, 2013 TriOptima announces that it has worked with industry participants to implement an advanced triReduce compression methodology for Index Tranche trades with non-standard coupons, known as “legacy” trades as well as the more recent Index Tranche trades with standard coupons.

triReduce compression cycles eliminated 25% or €35.9 billion of the European-based ITraxx and 56% or $189.6 billion of US CDX Index Tranche legacy notionals. Total notionals eliminated in the triReduce index tranche cycles were €80.4 billion and $281.3 billion including trades with standardized and non-standardized coupons.

Since 2009, coupons on index tranche trades have been standardized; however many outstanding trades with non-standard coupons remain in portfolios and are difficult to hedge. Currently index tranche trades are not mandated for clearing and remain in bilateral OTC derivative portfolios.  Eliminating these trades reduces gross notional exposures and results in higher leverage ratios and lower capital charges.

“We are pleased that we have been able to work with the industry to find a solution that helps to eliminate gross notional exposures and contributes to a reduction in systemic risk,” said Vikash Rughani, triReduce business manager.  “We look forward to continuing the Index Tranche compression cycles on a regular basis given that these trades are not currently cleared and the legacy trades are more expensive to manage because of their bespoke nature.”

About TriOptima
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 and manage disputes; triBalance to manage cleared and bilateral counterparty risk; and triQuantify to measure and analyze counterparty risk.

TriOptima, an ICAP Group company, maintains offices in London, New York, Singapore, Stockholm, and Tokyo.

http://www.trioptima.com

For further information please contact:

Susan Hinko, Global Head of Industry Relations
Tel: + 1 646 744 0410
susan.hinko@trioptima.com

Candice Adam, Argentus PR
Tel: +44 20 7397 2915
candice.adam@argentuspr.com

Contact Us

Bryony Scragg
Media Relations - NEX
bryony.scragg@nex.com 0207 818 9689 LinkedIn
Bryony scragg

RELATED NEWS

08 August 2016

TriOptima completes first triReduce compression cy...

TriOptima completes first triReduce compression cycle for cleared Mexican Peso swaps at CME Group

London, New York - 8 August 2016 – TriOptima, a leading provider of OTC derivatives ...

Read More
13 July 2016

TriOptima & CLS win FX Week’s Best Post-Trade Se...

Peter Weibel, CEO triReduce, TriOptima

London/New York – 13 July, 2016: TriOptima, an award-winning post trade infrastructu...

Read More
10 May 2016

Interest in post trade risk mitigation services gr...

Yutaka Imanishi, CEO APAC, TriOptima

Hong Kong, Singapore, 10 May, 2016, TriOptima, the award-winning post trade infrastructure...

Read More
05 May 2016

TriOptima completes first triReduce compression cy...

Peter Weibel, CEO triReduce, TriOptima

London, New York - 5 May 2016 – TriOptima, the award-winning post trade infrastructu...

Read More
RESOURCES

RESOURCES

Browse media and documents
which are available to download.

Images & Video
INSIGHTS

INSIGHTS

Keep up with the latest coverage
of NEX and its industry experts.

See our insights