TriOptima, an OTC derivatives market infrastructure service, today announced that it is extending its triResolve Margin collateral management service to support automated Swift payment capabilities. The new settlement automation service provides instant connectivity to the Swift network for cash transfers and securities settlement, as well as direct access to a broad range of custodians and […]
TriOptima saw a 71% increase in the gross notional value of FX forward contracts going into the triReduce CLS FX compression service last year. This means that $9.1 trillion was eliminated from counterparties’ FX forward portfolios in 2019, a new record for the service. In Q4 alone it compressed $4.9 trillion of gross notional value, […]
TriOptima has announced that it has completed the first cleared inflation swap compression run at LCH SwapClear. The run was completed on 19 July with euro cleared inflation swaps being compressed through the TriReduce service and the firm says it will go live with sterling and dollar cleared inflation swaps compression in LCH SwapClear “imminently”. In order to […]
CME Group’s TriOptima says it has reduced notional outstanding at Eurex Clearing by 26% following a record compression run on June 26, 2019. The latest run, which equates to $3.9 trillion worth of cleared euro interest rate swaps (IRS) and forward rate agreements (FRAs), represents a 143% increase on the previous record of $1.6 trillion. […]
CME Group has appointed new heads to the EBS, BrokerTec and Optimisation business lines as part of its ongoing integration with NEX Group, which the exchange acquired last year. Jeff Ward has been named global head of EBS, having formerly served as global head of NDFs and forwards and head of EBS Asia, based in […]
TriOptima has launched triCalculate IM Analytics, a new tool to provide insight into the options for initial margin (IM) calculation, helps with the identification and prioritisation of in-scope counterparties and aids trading decisions to reduce future IM costs, the group says.The service supports organisations that are in-scope for Phases 4 and 5 of the IM requirements, which come into effect in 2019/20. These two phases are anticipated to pull in thousands of regional banks and buy side participants with portfolios above €750bn, and €8bn in notional value, respectively. Those coming into scope are faced with a variety of operational challenges around the calculation and exchange of IM.“With less than a year to go until the next IM tranche, regulators will expect to see tried and tested IM calculation models supported by data well in advance of the September deadline.
TriOptima, a provider of multilateral compression services for OTC markets, set a new record for its triReduce portfolio compression service in 2018, having compressed $250 trillion gross notional value of trades at LCH SwapClear.The firm says this record, which represents an annual increase of 31% in terms of notional value, was driven by a combination of increased participation of both dealers and their clients, increased trade submission to triReduce cycles and a wider adoption of the Trade Revision methodology, which improves compression efficiency by up to 50% by allowing a wider range of trade economics to be changed.“We are proud that another record compression year continues to help the industry achieve important capital and operational cost reductions,” says Peter Weibel, co-CEO at TriOptima.
For the first time, trades registered in LCH’s SwapAgent service were successfully compressed in TriOptima’s multilateral USD/EUR cross-currency swap compression cycle. Using its triReduce compression service, €4.5 billion in notional of trades registered in SwapAgent were compressed. During the run, SwapAgent and non-SwapAgent trades were blended together to achieve better benefits from the compression.Compression is the process by which members can eliminate offsetting trades to reduce notional outstanding and the number of line items in a portfolio. Capital requirements such as those introduced under the Basel III leverage ratio have incentivised banks to reduce notional outstanding.
In this week’s podcast, Colin Lambert and Galen Stops take a look at the first in-depth analysis from a broker of the CME-NEX deal and while they accept that much of what was written was already known and had been discussed there were a few nuggets of useful information in there.
On the subject of mergers and acquisitions, they also discuss the recent changes at Refinitiv and clarify their thoughts on potential M&A activity involving that firm’s Matching, Dealing and FXall businesses. Will firms be willing to splash the amount of cash required to complete such a deal? Who would be the best buyers for the combined business or elements thereof? This and more is discussed.
In a quite remarkable conclusion, they close out by expressing sympathy for a regulator – something unlikely to ever happen again – before Lambert offers listeners the benefit(?) of his experience of trading Cable with a trading recommendation as the Brexit saga continues…what could go wrong?
Equities analysts at UBS have issued a research report on the merger between CME Group and NEX Group, stating that while they are confident in the potential upsides to this deal, the benefits might not start to materialise for at least a year.
Having previously downgraded CME shares from “Buy” to “Neutral”, the UBS analysts Alex Kramm and John Goode decided to maintain the current rating, with an unchanged 12-month price target of $204 per share. At the time the report was issued, CME shares were trading at $189.51.