Press release
July 30, 2008
TriOptima interdealer CDS tear ups in 2008 exceed 50% of the entire interdealer notional principal outstandings at year-end 2007
TriOptima announced that its portfolio compression service, triReduce, had terminated $17.8 trillion notional principal in CDS swaps year-to-date. This represents more than 50% of the $32 trillion total interdealer CDS notional principal outstandings as reported by the BIS for year end 2007.
“We are working closely with our clients to facilitate continued growth in terminated volumes through year end.“ said Brian Meese, Group CEO. “We anticipate that the level of terminations achieved in 2008 will come close to the volume of new trading, contributing significantly to stabilizing the notional principal levels that have attracted so much regulatory attention.”
In addition to CDS index cycles, TriOptima offers portfolio compression cycles in other types of’ CDS transactions including Asian single names and indices, emerging market single names and indices, tranches, and other single names. Participation has reached record levels as dealers continue to reduce their notional principal outstandings, increase their liquidity and manage their counterparty credit exposures.
About TriOptima
TriOptima is the award-winning supplier of technology-leveraged post trade processing services including triReduce and triResolve.
triReduce, the first portfolio compression service for OTC derivative dealers, pioneers technology that eliminates risk and reduces operational and capital costs. Serving over 120 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% of all OTC derivative transactions globally. The service benefits trade control, settlement, documentation, collateral and counterparty credit risk functions. Web-based, interactive, with advanced matching and reporting capabilities, the triResolve service reconciles all OTC derivative products, from plain vanilla to complex structures.
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