TriOptima today announced that it has resumed triReduce compression
cycles within LCH.Clearnet's SwapClear service, eliminating $16 trillion
in notional principal with one EUR and one USD interest rate swap cycle
in the last month of 2013. This brings the cumulative total of notional
compressed by TriOptima and SwapClear to $204 trillion.
With the resumption of triReduce multilateral compression in December,
33 SwapClear clearing members reduced their gross notional outstandings
by almost $43 trillion in 2013. Lower gross notional exposure
contributes to bringing an institution's leverage ratio in line with
regulatory expectations, an important goal for banks. Trade compression
cycles also help ensure post-trade efficiency; and running regular
cycles in a range of currencies reduces both the gross notional and the
number of outstanding OTC derivative transactions in the Clearing House.
"We are pleased that we have resumed the triReduce service for SwapClear
clearing membrs," said Peter Weibel, triReduce CEO. "We know there is
strong interest from customers to eliminate as much gross notional
exposure as possible in the Clearing House, and we have collaborated
with LCH.Clearnet's SwapClear service and its clearing members to
develop an ambitious compression schedule for 2014."
"Our clearing members are under increasing pressure to reduce notional
outstanding due to the emerging capital rules on derivatives, and the
re-introduction of the triReduce compression service within SwapClear is
therefore a key component of our offering", said Daniel Maguire, head of
LCH.Clearnet SwapClear US.
Since the launch of triReduce in 2003, OTC derivative market
participants have eliminated more than $375 trillion in notional
principal outstanding using the service. triReduce cycles include
cleared interest rate swaps and uncleared interest rate swaps in 27
currencies, credit default index and single name swaps and commodity
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; and triBalance to manage cleared and bilateral counterparty
TriOptima, an ICAP Group company, maintains offices in London, New York,
Singapore, Stockholm, and Tokyo.
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