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. […]
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.
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.