OSTTRA has successfully completed a record compression run in the Mexican Peso (MXN) at CME Group. The compression saw over MXN 26 trillion in notional value compressed, surpassing the previous record by more than 43%. This milestone comes as market participants intensify efforts to reduce their exposure to the 28-day TIIE ahead of the upcoming transition to the new F-TIIE reference rate at the end of December.

The compression service, powered by OSTTRA triReduce, has proven instrumental in simplifying portfolios by significantly reducing notional exposures and line items for both cleared and non-cleared over-the-counter (OTC) derivative trades. Through the implementation of multilateral compression opportunities across diverse portfolios, OSTTRA enables firms to mitigate risk and manage the rising costs associated with their balance sheets — a crucial advantage in today’s environment of escalating resource constraints.

Peter Lundgren, Head of Rates and Credit Compression at OSTTRA, said:  “As the industry moves towards the F-TIIE transition, we are committed to ensuring a seamless switch for market participants. Our record compression run in MXN underscores the vital role that our services play in helping firms effectively reduce exposure, lower costs, and manage risk.”

In addition, OSTTRA MarkitWire is also ready to support firms through the MXN cleared trade transitions, with the dress rehearsals starting in September and live events in November, offering consistent processing across all CCPs and the same comprehensive support our customers rely on.

Source: OSTTRA