Press release
February 25, 2008
TriOptima responds to market events with termination cycles for LCDX and Quebeqor CDS
TriOptima, the award-winning provider of post trade processing services, announced that it has added special default tear up cycles to its triReduce termination schedule in response to recent market defaults.
With the bankruptcy filing of Quebeqor World Inc., TriOptima offered a single name CDS termination cycle on February 6th and an index termination cycle including Quebecor-related indices on February 14th. Eliminating these transactions from their portfolios prior to the settlement auction helps CDS dealers reduce their administrative and operational costs as well as operational risk. It also relieves pressure on the auction process for the physical bonds by reducing the number of outstanding transactions in settlement.
In October 2007, TriOptima added a termination cycle in the Loan CDX index, LCDX, in response to the Movie Gallery default event, to facilitate tear ups in anticipation of the settlement auction later in the month. By eliminating 3200 transactions prior to settlement, CDS dealers reduced their administrative and operational costs and simplified settlement procedures.
“While 2006 saw several defaults and subsequent special termination cycles for Calpine, Dana, Alltel and Dura, there hadn’t been a need for special cycles for almost a year,” commented Ulf Andersson, business manager for triReduce. “After the market turbulence last summer, defaults began affecting the CDS market again. triReduce makes a tangible difference by helping our clients reduce their outstanding portfolios in these distressed situations. We will continue to offer special default cycles as needed.”
About TriOptima
TriOptima is the award-winning supplier of technology-leveraged post trade processing services including triReduce and triResolve.
triReduce, the multilateral early termination service for OTC derivative dealers, pioneers technology that eliminates risk and reduces operational and capital costs. Serving over 100 bank and non-bank subscribers worldwide including the major local and global dealers in derivatives, triReduce is a critical tool for maintaining post trade processing efficiency.
triResolve is a proactive portfolio reconciliation service that serves collateral management and operations in all types of firms with an OTC derivatives portfolio. Web-based, interactive, with advanced matching capabilities, the triResolve service reconciles the entire range of OTC derivatives transactions covered under a collateral agreement such as the ISDA CSA.
TriOptima maintains offices in Stockholm, London, New York, and Singapore. TriOptima is a privately-held company owned by its employees and directors with a significant minority interest held by ICAP plc.
For further information please contact:
Susan Hinko, Managing Director, Industry Relations
Tel: + 1 646 744 0410
susan.hinko@trioptima.com
Meredith Sledd Lindquist, Global Head of Marketing
Tel: +46 8545 25 664
meredith.sledd.lindquist@triopima.com