TriOptima compresses $62tr in OTC derivatives
17 January 2012 London
Image: Shutterstock
TriOptima has eliminated $62 trillion in notional principal outstanding for both interest rate and credit default swaps in 2011.
This kind of portfolio compression is achieved using the company's tool for maintaining post trade processing efficiency, triReduce. Portfolio compression is one of the tools that global regulators have identified as effective in reducing counterparty credit risk.
“We developed a strong partnership with LCH SwapClear and its members that resulted in significant terminations of cleared interest rate swap transactions,” said Peter Weibel, CEO of triReduce. “In some months, like October, we actually eliminated more existing interest rate swwap notional principal from the clearinghouse than the aggregate notional of new trades submitted to clearing during the same period. We are working to sustain these results in 2012 within the clearinghouse while continuing our expansion in non-cleared currencies around the globe.”
The record-breaking figure includes $56.4 trillion in interest rate swap notional principal of which $48.3 trillion were cleared swaps in LCH SwapClear, and $5.6 trillion in credit default swap notional principal. This represented a 14 per cent increase over 2010 levels overall, and a 23 per cent increase in interest rate swap terminations.
This kind of portfolio compression is achieved using the company's tool for maintaining post trade processing efficiency, triReduce. Portfolio compression is one of the tools that global regulators have identified as effective in reducing counterparty credit risk.
“We developed a strong partnership with LCH SwapClear and its members that resulted in significant terminations of cleared interest rate swap transactions,” said Peter Weibel, CEO of triReduce. “In some months, like October, we actually eliminated more existing interest rate swwap notional principal from the clearinghouse than the aggregate notional of new trades submitted to clearing during the same period. We are working to sustain these results in 2012 within the clearinghouse while continuing our expansion in non-cleared currencies around the globe.”
The record-breaking figure includes $56.4 trillion in interest rate swap notional principal of which $48.3 trillion were cleared swaps in LCH SwapClear, and $5.6 trillion in credit default swap notional principal. This represented a 14 per cent increase over 2010 levels overall, and a 23 per cent increase in interest rate swap terminations.
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