Press release
July 15, 2009
TriOptima eliminates $13.9 trillion in interest rate swap notional outstandings in first half of 2009
TriOptima’s triReduce early termination service eliminated $13.9 trillion in interdealer notional principal outstandings in 15 interest rate swap (IRS) currencies in the first half of 2009, exceeding results for the whole of 2008. Commitments to the international regulators to reduce IRS oustandings and renewed focus on risk reduction efforts in the area of interest rate swaps resulted in significant advancements by the dealers.
The 19 triReduce early termination cycles included AUD, CAD, CHF, EUR, GBP, HKD, INR, JPY, MXN, NOK, NZD, SEK, USD, KRW, and ZAR interest rate swaps. The largest results were from two EUR cycles eliminating $5 trillion and two USD cycles eliminating $7.1 trillion. Total interdealer outstandings in USD interest rate swaps as reported by the BIS for June 2008 was $40 trillion, $39.4 trillion for EUR IRS. While notionals terminated in other currencies were smaller, they often contributed to significant reductions in risk-weighted assets, capital charges, and counterparty credit exposure.
“As OTC derivative dealers accelerated their interest in shedding notional outstandings and reducing their counterparty exposures in IRS, TriOptima was able to support them with 19 triReduce cycles in 15 currencies around the world,“ said Ulf Andersson, business manager for triReduce. “In the second half of 2009, we will be offering 21 additional cycles targeting some of the currencies already covered as well as additional currencies and transactions in LCH SwapClear. We are pleased to be able to assist our subscribers in meeting their risk management commitments.”
TriOptima’s triReduce cycles also eliminate interest rate swaps in CZK, HUF, PLN, SGD, and other Asian currencies. In 2008, interdealer notional principal terminations in IRS in 19 currencies totaled $13.6 trillion.
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 135 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 21 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 70-75% of all non-cleared 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, Singapore, and Tokyo. 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