Press release
December 16, 2008
TriOptima terminates 6,462 KRW swaps with a notional of KRW 136 trillion (100 billion USD) in first ever KRW compression cycle *
TriOptima conducted the first-ever triReduce compression cycle in Korean won (KRW) interest rate swaps. Seven banks terminated 6462 trades with a notional principal of KRW 136 trillion ($100 billion USD) doublecounted. They eliminated KRW 4.5 trillion ($3.3 billion) in mark-to-market exposure.
“Given the current challenges facing financial institutions globally, eliminating these transactions offers major benefits by reducing counterparty credit exposure, freeing up capital, increasing liquidity and reducing operational costs and risks,” commented Peter Weibel, CEO of TriOptima Asia. “We are pleased that we were able to terminate 89% of all the matched trades between participating banks. We look forward to even greater success in the future as we continue to expand our Asian presence.”
TriOptima offered IRS compression cycles in 19 currencies in 2008 to meet demand for its multilateral termination service, triReduce. CZK, HUF, INR and KRW were introduced in 2008. Terminations in these currencies release significant amounts of capital which is helpful to institutions facing liquidity constraints.
*all figures are doublecounted
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. triReduce offers compression cycles in single name and index CDS swaps worldwide, IRS swaps in 19 currencies and a range of energy derivatives.
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 60% 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