10.30.2020

triReduce Has First Compression With SONIA Replacements

10.30.2020
Shanny Basar
SwapClear Reports Swap Compression

TriOptima, a leading infrastructure service that helps to lower costs and mitigate risk in OTC derivatives markets, announced the completion of the first triReduce enhanced compression cycle to include SONIA risk replacement trades. The cycle took place on October 22, 2020 at LCH SwapClear.

The triReduce benchmark compression service allows swap market participants to reduce their gross and net exposure to legacy benchmarks while increasing their adoption of alternate benchmarks through risk replacement trades.

“This is the first step of an iterative process for our swap market clients as they convert their swaps exposure from legacy benchmark rates,” says Philip Junod, Senior Director, triReduce and triBalance Business Management. “The triReduce benchmark conversion service has the capacity to run conversion alongside compression at scale, helping participants proactively reduce their exposure at the same time as increasing their adoption of the alternative reference rates in currencies impacted by benchmark reform.”

TriOptima provides frequent compression cycles in all the major Central Counterparty clearing houses in all cleared currencies. After this first risk replacement compression cycle in sterling, triReduce will offer enhanced compression/benchmark conversion cycles in other currencies as the market need arises.

TriOptima is a part of CME Group.

Source: CME Group

Related articles

  1. Trading Europe From ‘Across the Pond’

    Status grants clearing members clarity on the regulatory treatment of their exposures to OCC.

  2. The clearinghouses will be using a VaR methodology.

  3. Auerbach Grayson Launches U.S. Equities Trading Business
    Daily Email Feature

    FTX US Boosts Equities Business

    The US regulated cryptocurrency exchange has acquired Embed Clearing.

  4. BIS Warns on Asset Management

    'Crypto carnage’ has shown how meaningful protections for investors, markets, and the public are needed.

  5. Banks' Risk Management Seen as Lagging

    The enhanced margining model strengthens resilience and boosts capital efficiency.