01.15.2019

TriOptima Sets Record For Portfolio Compression

TriOptima, the leading multilateral compression provider that lowers costs and mitigates risk in OTC markets, today announced that it has set a new record for its triReduce portfolio compression service. In 2018, TriOptima compressed $250 trillion gross notional value of trades at LCH SwapClear, an annual increase of 31%.

This new record was driven by intensive participation of both dealers and their clients, increased trade submission to triReduce cycles and a wider adoption of the Trade Revision methodology, which improves compression efficiency by up to 50% by allowing a wider range of trade economics to be changed.

“We are proud that another record compression year continues to help the industry achieve important capital and operational cost reductions,” said Peter Weibel, Co-CEO TriOptima. “We look forward to working with our partners and clients in 2019 to achieve further efficiencies around benchmark conversion and risk transformation across over-the-counter and exchange-traded derivatives.”

“2018 saw many records broken in OTC clearing, including those for newly cleared activity and for subsequent compression. We look forward to continuing to work with our buy and sell side clients, and ACSP partner TriOptima, to compress their cleared OTC risk in SwapClear and thereby realise ever-greater efficiencies,” said Michael Davie, Global Head of Rates, LCH.

triReduce delivers multilateral compression to a liquidity pool of over 270 market participants in four asset classes: Rates, FX, Credit and Commodities. Compression is available across 28 currencies and 6 CCPs, and in multiple products, such as inflation swaps and cross currency swaps. As a network service, triReduce maintains a low barrier to entry, minimizing the technology costs and resource required to access the service.

Source: TriOptima

Related articles

  1. MarketAxess Expands in Asia

    Phase 5 of the uncleared margin rules (UMR) took effect from September 2021.

  2. Temporary equivalence is set to expire on June 30 2022.

  3. Margins Raised Ahead of Brexit Vote

    IRS trading volumes have fragmented without an equivalence agreement.

  4. New Collateral Transformers To Emerge

    Phase 5 of the uncleared margin rules came into effect on 1 September.

  5. Buy Side Forced to Review Collateral Arrangements

    Triparty repos can be executed across U.S. Treasury securities to central clearing.