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. “We look forward to working with our partners and clients in 2019 to achieve further efficiencies around benchmark conversion and risk transformation across over-the-counter and exchange-traded derivatives.”
“2018 saw many records broken in OTC clearing, including those for newly cleared activity and for subsequent compression. We look forward to continuing to work with our buy and sell side clients, and ACSP partner, TriOptima, to compress their cleared OTC risk in SwapClear and thereby realise ever-greater efficiencies,” says Michael Davie, global head of rates, LCH.
The triReduce service delivers multilateral compression to a liquidity pool of over 270 market participants in four asset classes: rates, FX, credit and commodities. Compression is available across 28 currencies and six CCPs, and in multiple products, such as inflation swaps and cross currency swaps.