Press release
October 31, 2008
TriOptima CDS compression cycles help industry eliminate $24.5 trillion notional principal
TriOptima’s portfolio compression service, triReduce, contributed $24.5 trillion of the $25 trillion in CDS notional principal reductions reported by ISDA today.
TriOptima has offered 39 compression cycles since the beginning of the year and will offer 9 additional compression cycles in November and December as the industry focuses its efforts on reducing the notional principal outstandings.
TriOptima’s CDS compression cycles include American, European, Emerging Market, Asian and Japanese indices; ABX and CMBX indices; American and European tranches; US, European, Emerging Market, Japanese, and Asian single name CDS; and special cycles for single names and indices affected by credit events like Washington Mutual, Fannie Mae, Freddie Mac, Lehman and the Icelandic banks.
“As ISDA reports, the industry has worked with TriOptima’s infrastructure this year to actually reverse the growth in outstanding notional amount of CDS trades,” said Brian Meese, group CEO. “It is important to note that TriOptima’s infrastructure has been in use by the CDS industry for more than three years, and comes not as a response to pressure, but is a clear example of successful self-organization around
healthy operational principles. “
About TriOptima
TriOptima is the award-winning supplier of technology-leveraged post trade processing services including triReduce and triResolve.
triReduce, the 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 50% 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 privatelyheld 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