First portfolio compression cycle completed in Singapore
27 November 2012 Singapore
Image: Shutterstock
TriOptima announces that four member banks of the Singapore Exchange (SGX) successfully eliminated more than 82 percent of the Singapore dollar (SGD) interest rate swaps they wanted to terminate in the first SGX triReduce portfolio compression cycle.
The four participants, including two local institutions, reduced notional principal outstanding by $25 billion SGD in the inaugural compression cycle for cleared trades.
“We are pleased with how smoothly this initial compression cycle in SGX went,“ said Lawrence Chan, managing director of business management and support of treasury and markets, Development Bank of Singapore. “We view this as a natural extension of the bilateral compression cycles that TriOptima has offered in Singapore since 2004.”
“Our successful collaboration with SGX and its members demonstrates the benefits of using compression as a complement to the clearing process,” said Yutaka Imanishi, CEO of TriOptima Asia Pacific.
“Regular triReduce cycles in the CCP ensures that exposures will be minimized even with the growth in clearing since a good measure of success in a CCP is turnover rather than accumulations of notional and trade volumes. We look forward to continuing our work with SGX and its members.”
The four participants, including two local institutions, reduced notional principal outstanding by $25 billion SGD in the inaugural compression cycle for cleared trades.
“We are pleased with how smoothly this initial compression cycle in SGX went,“ said Lawrence Chan, managing director of business management and support of treasury and markets, Development Bank of Singapore. “We view this as a natural extension of the bilateral compression cycles that TriOptima has offered in Singapore since 2004.”
“Our successful collaboration with SGX and its members demonstrates the benefits of using compression as a complement to the clearing process,” said Yutaka Imanishi, CEO of TriOptima Asia Pacific.
“Regular triReduce cycles in the CCP ensures that exposures will be minimized even with the growth in clearing since a good measure of success in a CCP is turnover rather than accumulations of notional and trade volumes. We look forward to continuing our work with SGX and its members.”
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