Press release
January 12, 2009
TriOptima CDS compression cycles eliminate $30.2 trillion in notional principal during 2008
TriOptima’s portfolio compression service, triReduce, eliminated $30.2 trillion in CDS notional principal during 2008. TriOptima offered 50 compression cycles in 2008 contributing significantly to industry efforts to reduce the notional principal outstandings. Reductions in notional principal continued to accelerate throughout 2008, increasing 300% over 2007 levels as indicated in the graph below.
“In cooperation with the dealing community, we were able to accommodate the demand for additional regular cycles and support the special default cycles that were required as market conditions deteriorated,” commented Brian Meese, Group CEO. “It is important to note that the $30.2 trillion notional eliminated by the dealers this year exceeds the year end outstandings of $29.3 trillion reported by DTCC. By reducing exposures through regular compression cycles the dealers were able to continue providing effective risk mitigation tools while responding to regulatory concerns about counterparty exposure and operational challenges.”
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.
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 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