TriOptima announces today that it eliminated JPY 271.6 trillion (USD3 trillion) in cleared interest rate swap notional principal outstandings from LCH SwapClear, the largest ever triReduce compression cycle in JPY interest rate swaps. Since TriOptima began offering its triReduce early termination service in JPY in 2004, almost JPY1,600 trillion (USD18.3 trillion) in cleared and uncleared swaps have been eliminated.
“The banks, LCH SwapClear and TriOptima worked together to achieve these record-breaking results,” said Ken Nishimura, head of TriOptima Japan. “Contributing to the success of the cycle was an increase in participants as institutions recognize the benefits of compression. We anticipate continued expansion of the process in 2013.”
Compression services are offered through TriOptima’s triReduce service to swap market participants with significant two-way flow. In triReduce, participants are able to tear up their existing trades at their own mid mark-to-market valuations avoiding the difficult negotiation process of bilateral termination. Multilateral terminations leverage off the expanded number of participants and result in increased numbers of terminated trades.
Eliminating unnecessary swaps in an OTC derivatives clearinghouse promotes the efficient use of capital and collateral and contributes to overall financial stability by moderating the pace of growth in outstanding notional principal in the market.
TriOptima, an ICAP Group company, is the award-winning provider of OTC derivatives post trade risk management services including triResolve, triReduce, triBalance, and the recently-launched triQuantify.
triBalance facilitates proactive counterparty risk management by rebalancing counterparty risk exposure between multiple CCPs and bilateral relationships (in Rates, Credit and Commodities) enabling an efficient use of capital and collateral and reducing systemic risk.
triQuantify offers risk analytic models that leverage recent developments in state-of-the-art massively parallel computing devices to calculate metrics such as CVA, PFE and GVA on a global scale and with more realistic and accurate risk models.
triResolve is a network community service that provides counterparty exposure management services including proactive portfolio reconciliation of OTC derivative portfolios, margin call management, and dispute resolution.
TriOptima maintains offices in London, New York, Singapore, Stockholm, and Tokyo.
Source: http://finance.yahoo.com/news/trioptima-eliminates-jpy271-6-trillion-110000977.html
“The banks, LCH SwapClear and TriOptima worked together to achieve these record-breaking results,” said Ken Nishimura, head of TriOptima Japan. “Contributing to the success of the cycle was an increase in participants as institutions recognize the benefits of compression. We anticipate continued expansion of the process in 2013.”
About triReduce Compression
Compression services are offered through TriOptima’s triReduce service to swap market participants with significant two-way flow. In triReduce, participants are able to tear up their existing trades at their own mid mark-to-market valuations avoiding the difficult negotiation process of bilateral termination. Multilateral terminations leverage off the expanded number of participants and result in increased numbers of terminated trades.
Eliminating unnecessary swaps in an OTC derivatives clearinghouse promotes the efficient use of capital and collateral and contributes to overall financial stability by moderating the pace of growth in outstanding notional principal in the market.
About TriOptima
TriOptima, an ICAP Group company, is the award-winning provider of OTC derivatives post trade risk management services including triResolve, triReduce, triBalance, and the recently-launched triQuantify.
triBalance facilitates proactive counterparty risk management by rebalancing counterparty risk exposure between multiple CCPs and bilateral relationships (in Rates, Credit and Commodities) enabling an efficient use of capital and collateral and reducing systemic risk.
triQuantify offers risk analytic models that leverage recent developments in state-of-the-art massively parallel computing devices to calculate metrics such as CVA, PFE and GVA on a global scale and with more realistic and accurate risk models.
triResolve is a network community service that provides counterparty exposure management services including proactive portfolio reconciliation of OTC derivative portfolios, margin call management, and dispute resolution.
TriOptima maintains offices in London, New York, Singapore, Stockholm, and Tokyo.
Source: http://finance.yahoo.com/news/trioptima-eliminates-jpy271-6-trillion-110000977.html
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