Press release
July 3, 2008
TriOptima reduces CDS notional principal outstanding by 32 trillion USD
TriOptima announced today that since the inauguration of its credit default swap portfolio compression service triReduce in 2005, it has reduced the notional principal outstandings of credit default swaps by 32 trillion USD versus a total outstanding of 62 trillion USD. Through portfolio compression cycles, TriOptima has achieved elimination ratios of 95% in credit index portfolios and 72% of credit single-name portfolios.
TriOptima's CEO Brian Meese commented, "TriOptima introduced portfolio compression to the market in 2003, expanding into CDS and other products in 2005. Today the 25 most active dealers all use TriOptima’s portfolio compression services. We are pleased with the industry’s response to our initiative, and we support the efforts of the industry to expand the process. Of the 32 trillion USD TriOptima has eliminated, 16 trillion USD have been removed in the first six months of 2008 alone, showing a significant increase in focus by the industry on this process as a way of addressing regulators’ concerns. We believe that terminating over 50% of total outstanding is an excellent start, and we look forward to working closely with our clients and all participants in the market to achieve further success."
TriOptima will be running 20 regularly scheduled compression cycles in both single-name and index credit derivatives during the second half of 2008.
The Bank for International Settlements (BIS) recognized TriOptima's achievements in its December 2007 Triennial Report. TriOptima has also won several awards for its innovative service, including Risk Magazine 2006 Technology Platform of the Year, labeling triReduce a "godsend" for the credit derivatives market, and the Risk Magazine Industry Trade Processing Platform Award in 2007.
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 network community service for proactive portfolio reconciliation of OTC derivative portfolios. Used by global dealers, regional banks and buy-side firms, triResolve currently handles more than 40 percent of all OTC derivative transactions globally. Web-based, interactive, with advanced matching and reporting capabilities, the triResolve service reconciles all OTC derivative products, from plain vanilla to complex structures across all asset classes.
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, Global Head of 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