Press release
July 4, 2007
Transactions and participants double in TriOptima’s latest CDS index tranche cycles
TriOptima announced today that the number of derivative dealers participating in its multi-lateral CDS index tranche terminations and the volume of transactions terminated had doubled since the first cycle in this product type a year ago. Fourteen dealers terminated over 4600 transactions in the Euro and U.S. Dollar denominated instruments during May and June.
By eliminating these tranche trades, dealers also eliminated the costly operational, legal and administrative procedures that would likely ensue if any of the underlying entities in an index experienced a credit event. CDS index tranches, a specialized type of credit derivative, enable the trading of credit risk correlations across a portfolio of underlying entities in an index. These structures include a series of credit event triggers that require careful monitoring over the entire life of the contract.
Raf Pritchard, Head of Client Management in North America, said, “We continue to see impressive growth in tranche terminations, both in terms of participants and numbers of trades, underscoring the value to subscribers of reducing their trades in these high-profile instruments.”
About TriOptima
TriOptima is the award-winning supplier of technology-leveraged post trade processing services to the OTC derivatives market. With over 100 bank and non-bank subscribers worldwide including the major local and global dealers in derivatives, TriOptima delivers critical services for post trade processing efficiency.
triReduce, its multilateral mass termination service for OTC derivative contracts, pioneers technology that eliminates risk and reduces operational and capital costs. Since its launch in 2003, triReduce has enabled the termination of more than 450,000 OTC derivative contracts.
triResolve, the web-based derivatives portfolio reconciliation service for collateral managers, has created a community where counterparties transform portfolio reconciliation into a proactive process.
TriOptima maintains offices in Stockholm, London, New York, and Singapore.
TriOptima is a privately-held company owned by its employees and directors. Minority shareholders include Allen & Overy. ICAP plc holds a significant minority stake.
For further information please contact:
Susan Hinko, Head of Market Communications
Tel: +1 646 344 7101
susan.hinko@trioptima.net
Hans Patyne, Global Head of Sales and Marketing
Tel: +44 20 7000 5230
hans.Patyne@trioptima.net