TriOptima, a provider of post-trade services for over-the-counter (OTC) derivatives, reports that market participants have eliminated $500 trillion in notional principal outstanding since 2003, when it introduced triReduce, its multilateral compression service.
That amount in eliminated notional principal outstanding includes “cleared and uncleared trades across a broad spectrum of products including cleared interest rate swaps and uncleared interest rate swaps in 27 currencies, credit default index and single name swaps, and commodity swaps,” according to a TriOptima statement, which adds that more than 200 financial institutions worldwide participated in its risk reduction.
“Working together with market participants and clearinghouses globally, TriOptima is proud to mark this important milestone,” Peter Weibel, CEO of TriOptima’s triReduce, says in the statement. “Using participants’ individual risk tolerances leads to increased compression opportunities. This will also be available to clearing members for cleared, unlinked trade compression cycles further enabling participants to optimize their leverage ratios.”
Currently, TriOptima’s multilateral compression service offers compression for “cleared and uncleared interest rate swaps (including FRAs and overnight index swaps); cross currency swaps; credit derivatives; and commodity swaps. Inflation swap and FX forward compression cycles will be introduced soon,” according to the statement.
In addition to triReduce, which focuses on reducing swap inventory and counterparty risk, TriOptima, an ICAP Group company, also offers triResolve to reconcile OTC derivative portfolios and manage disputes, triBalance to manage cleared and bilateral counterparty risk, and triCalculate to measure and analyze counterparty risk, the company says.
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