In other FinTech news, the CFTC amends a key rule and Itiviti expands its links to equity options venues.
Eurex Clearing Implements triReduce
Post-trade infrastructure provider TriOptima announced that Eurex Clearing members recently completed the first successful triReduce compression cycle for cleared euro (EUR) interest rate swaps (IRS), officials say.
“Portfolio compression” reduces the size of an existing over-the-counter, interest rate swaps portfolio “with respect to the number of trades and notional through early termination of existing trades,” according to TriOPtima officials. triReduce offers compression across cleared and uncleared interest rate products in 27 currencies, credit default swaps, commodity swaps, inflation swaps, cross currency swaps, and FX forwards.
The compression cycle was the first collaboration between Eurex Clearing and TriOptima, officials say.
“With the EurexOTC Clear for IRS volumes continuing to grow at an impressive rate, the launch of our compression services with triReduce are an important part of our overall value proposition,” says Danny Chart, Eurex Group, head of sales initiatives, in a prepared statement. “We will continue to develop netting and compression services so that our members and their clients will be able to realize additional efficiencies when clearing more of their derivatives through Eurex Clearing, mitigating the impact of capital and balance sheet pressures,” Chart adds.
Eurex Clearing members can now “compress their cleared trades through triReduce and achieve the capital and balance sheet benefits of reducing their outstanding notional volumes,” says Peter Weibel, CEO of triReduce, in a statement.
CFTC Amends ‘Material Terms’ Rule
The CFTC is amending one of its rules affecting swap dealers (SD) and major swap participants (MSP) so that they are only required to exchange the “material terms” of their swaps transactions with their counterparties.
This change to the requirement found in CFTC Regulation 23.500(i) impacts portfolio reconciliation between counterparties.
“The final rule also amends the definition of “material terms” in CFTC Regulation 23.500(g),” according to CFTC officials. “The final rule benefits SDs, MSPs, and their counterparties by enabling them to focus on reconciling data fields that impact swap valuation and counterparty obligations, without impairing the CFTC’s ability to oversee and regulate the swaps markets.”
Itiviti Expands Equity Options Reach
Trading and networking infrastructure vendor Itiviti is expanding its equity options market reach by augmenting the current offering of links to Chicago Board Options Exchange (CBOE) and CBOE’s C2 with connectivity to Nasdaq PHLX and the International Securities Exchange (ISE), officials say.
“With the addition of ISE and PHLX, clients can now access half of the U.S. equity options volume on the three most liquid exchanges using Tbricks by Itiviti,” say vendor officials. Itiviti is also developing connectivity to BATS options, which will be introduced to clients in mid-2016.
“We see a growing interest from existing and prospective clients to access PHLX and ISE, driven by recent developments in ETF options,” said Oscar Jonsson, vice president, sales, Itiviti Americas.
Itiviti designed Tbricks to be “customizable, scalable,” and to provide an app library. “Itiviti clients can add their own unique sets of functionality and unlock new capabilities to respond to changing market requirements,” officials say.
Itiviti was created by uniting Orc Group, a trading and electronic execution vendor, and CameronTec Group, a financial messaging infrastructure and connectivity provider. “From its foundation in 2016, Itiviti has a staff of 400 and an estimated annual revenue of SEK 700 million,” officials say.
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