TriOptima completes first triReduce benchmark conversion at Japan Securities Clearing Corporation
21 December 2020 Japan
Image: KaterinaZizlavska/Adobe Stock
TriOptima, an infrastructure service that helps to lower costs and mitigate risk in over-the-counter (OTC) derivatives markets, has completed the first triReduce enhanced compression Japanese yen cycle.
This cycle, which took place on 4 December at the Japan Securities Clearing Corporation (JSCC), includes Tokyo Overnight Alternative Rate (TONA) risk replacement trades.
The triReduce benchmark compression service allows swap market participants to reduce their gross and net exposure to legacy benchmarks as well as increasing their adoption of alternate benchmarks through risk replacement trades.
Philip Junod, senior director, triReduce and triBalance business management, commented: "With the capabilities to run conversion alongside compression at scale, our triReduce benchmark conversion service helps swap market participants proactively reduce their exposure and increase their adoption of the alternative reference rates in currencies impacted by benchmark reform."
Takehiro Hosomura, executive officer of clearing planning and OTC derivatives clearing services, JSCC, added: "Ahead of an expected cessation of the London Inter-bank Offered Rate (LIBOR) publication, scheduled for the end of 2021, we hope that this service will be extensively utilised as a tool for the transition from JPY LIBOR to TONA, the alternative reference rate in Japan, and the widespread use of this service will contribute to the transition’s swift completion."
In October, TriOptima completed its first triReduce enhanced compression cycle to include sterling overnight index average risk replacement trades.
This cycle, which took place on 4 December at the Japan Securities Clearing Corporation (JSCC), includes Tokyo Overnight Alternative Rate (TONA) risk replacement trades.
The triReduce benchmark compression service allows swap market participants to reduce their gross and net exposure to legacy benchmarks as well as increasing their adoption of alternate benchmarks through risk replacement trades.
Philip Junod, senior director, triReduce and triBalance business management, commented: "With the capabilities to run conversion alongside compression at scale, our triReduce benchmark conversion service helps swap market participants proactively reduce their exposure and increase their adoption of the alternative reference rates in currencies impacted by benchmark reform."
Takehiro Hosomura, executive officer of clearing planning and OTC derivatives clearing services, JSCC, added: "Ahead of an expected cessation of the London Inter-bank Offered Rate (LIBOR) publication, scheduled for the end of 2021, we hope that this service will be extensively utilised as a tool for the transition from JPY LIBOR to TONA, the alternative reference rate in Japan, and the widespread use of this service will contribute to the transition’s swift completion."
In October, TriOptima completed its first triReduce enhanced compression cycle to include sterling overnight index average risk replacement trades.
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