TriOptima Halved SGD Notional Outstanding at LCH
TriOptima, a leading infrastructure service that lowers costs and mitigates risk in OTC derivatives markets, announced that it reduced the total Singapore dollars notional outstanding at LCH by 50% by compressing SGD 1.7T in interest rate derivatives H1 2021.
This contributes to a record 12 months with TriOptima successfully terminating over SGD 3.5 trillion worth of notional across 39 participants, including direct clearing members, clients, and clearing brokers.
The latest Singapore dollar compression run on Jun 23, 2021 also saw firms adopt TriOptima’s benchmark conversion service for the first time. The strong results and wide participation underscore the central role of TriOptima’ s compression service in helping the industry reduce legacy benchmark exposures, as part of the global shift to the new reference indices.
“TriOptima continues to help market participants decrease their exposure to legacy benchmarks,” said Philip Junod, Senior Director, triReduce and triBalance business management. “The results are a testament to our continued innovation, coupled with our global network to provide solutions to the challenges faced by the OTC derivatives industry.”
TriOptima is a part of CME Group.
IRM 2.0 allows for offsets to be reflected in the final initial margin value.
Clearing may be affected by the move to alternative reference rates.
The amendments aim to ensure a smooth benchmark transition.
triBalance allows banks to reduce risk in multiple CCPs concurrently.
Temporary equivalence was set to expire on June 30, 2022.