OSTTRA triReduce has announced the successful completion of a record-breaking inflation run for cleared U.S inflation at LCH, compressing over USD 600 billion in notional value. The achievement marks a 128% increase over the previous record, highlighting the increasing demand for efficient compression services amid continued inflationary pressures.

Increased trading volumes over the past few years, driven by higher inflation, have led to a significant build-up of notional at LCH. Currently, around $12 trillion in notional is spread across the three major currencies — USD, EUR, and GBP. The surge in activity has resulted in heightened interest from market participants, as the inflation portfolios now constitute a larger portion of their overall cleared rates portfolios.

“With outstanding notional building in at central counterparty clearing houses (CCPs), it is essential that we provide market participants with a way to manage their portfolios effectively,” said Erik Petri, Head of OSTTRA Optimisation. “This latest run perfectly demonstrates our ongoing commitment to providing scalable and innovative optimisation solutions, creating efficiencies for our customers.”

The news comes on the heels of U.K. inflation falling to the Bank of England’s target of 2.0% in May for the first time in nearly three years. OSTTRA triReduce has scheduled the next two inflation runs for the EU and UK markets. The EU inflation run is set for July, followed by the UK inflation run in August.

Source: OSTTRA