TriOptima Eliminates JPY271.6 Trillion Notional in Interest Rate Swaps from
LCH SwapClear in Record-Breaking Compression Cycle
NEW YORK & LONDON -- February 20, 2013
TriOptima announces today that it eliminated JPY 271.6 trillion (USD3
trillion) in cleared interest rate swap notional principal outstandings from
LCH SwapClear, the largest ever triReduce compression cycle in JPY interest
rate swaps. Since TriOptima began offering its triReduce early termination
service in JPY in 2004, almost JPY1,600 trillion (USD18.3 trillion) in cleared
and uncleared swaps have been eliminated.
“The banks, LCH SwapClear and TriOptima worked together to achieve these
record-breaking results,” said Ken Nishimura, head of TriOptima Japan.
“Contributing to the success of the cycle was an increase in participants as
institutions recognize the benefits of compression. We anticipate continued
expansion of the process in 2013.”
About triReduce Compression
Compression services are offered through TriOptima’s triReduce service to swap
market participants with significant two-way flow. In triReduce, participants
are able to tear up their existing trades at their own mid mark-to-market
valuations avoiding the difficult negotiation process of bilateral
termination. Multilateral terminations leverage off the expanded number of
participants and result in increased numbers of terminated trades.
Eliminating unnecessary swaps in an OTC derivatives clearinghouse promotes the
efficient use of capital and collateral and contributes to overall financial
stability by moderating the pace of growth in outstanding notional principal
in the market.
TriOptima, an ICAP Group company, is the award-winning provider of OTC
derivatives post trade risk management services including triResolve,
triReduce, triBalance, and the recently-launched triQuantify.
triBalance facilitates proactive counterparty risk management by rebalancing
counterparty risk exposure between multiple CCPs and bilateral relationships
(in Rates, Credit and Commodities) enabling an efficient use of capital and
collateral and reducing systemic risk.
triQuantify offers risk analytic models that leverage recent developments in
state-of-the-art massively parallel computing devices to calculate metrics
such as CVA, PFE and GVA on a global scaleand with more realistic and
accurate risk models.
triResolve is a network community service that provides counterparty exposure
management services including proactive portfolio reconciliation of OTC
derivative portfolios, margin call management, and dispute resolution.
TriOptima maintains offices in London, New York, Singapore, Stockholm, and
Global Head of Industry Relations
Tel: + 1 646 744 0410
Tel: +44 20 7397 2915
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