NEX Optimisation, announced today that participants in its triReduce compression service have eliminated over $1 quadrillion in OTC derivative notional principal since its introduction in 2003.
TriReduce a multilateral risk-constrained compression service that offers compression for cleared and non-cleared interest rate swaps in 28 currencies, cross currency swaps, inflation swaps, credit default swaps, FX forward, and commodity swaps.
Eliminating unnecessary swap inventory can help improve credit risk and capital management, reduces operational costs and risk, improves leverage ratios, and reduces systemic risk.
Commenting on the milestone, Peter Weibel, CEO of triReduce, says: “Hitting the $1 quadrillion mark is a significant achievement for the market. Our clients, both dealers and the buy side, are focused on eliminating as much notional principal as possible to meet regulatory goals and to manage their own balance sheets. We are proud to have worked together with our clients and other infrastructure providers where possible to achieve this goal.”