Press release
January 14, 2010
TriOptima’s multilateral termination service triReduce eliminates $14.5 trillion in CDS notional and $25.8 trillion in IRS notional in 2009
TriOptima announced that its triReduce multilateral termination service significantly reduced outstanding notionals between dealers in credit default swap (CDS) and interest rate swap (IRS) outstandings during 2009.
With 68 CDS portfolio compression cycles globally, triReduce eliminated $14.5 trillion in CDS notionals, $12 trillion in credit index transactions with an additional $2.5 trillion in European, Asian and Japanese single name and credit tranche transactions. This also included the Thomson index and single name portfolio compression cycles which were the first to be initiated after implementation of the ISDA “Small Bang” protocol.
Multilateral terminations in interest swap transactions virtually doubled in 2009 to $25.8 trillion from $13.6 trillion in 2008. The largest reductions in interdealer notional outstandings were in interest rate swaps in USD ($11.2 trillion), EUR ($8.8 trillion) and JPY ($1.8 trillion). TriOptima offers triReduce termination cycles in 22 currencies globally including AUD, CAD, CHF, CNY, CZX, DKK, EUR, GBP, HKD, HUF, INR, JPY, KRW, MXN, NOK, NZD, PLN, SEK, SGD, TWD, USD, and ZAR.
“We are pleased that we were able to support the industry in its ongoing efforts to reduce OTC derivative notional outstandings,” said Ulf Andersson, triReduce global business manager. “CDS portfolio compression continues strong despite the dramatic reductions through compression in 2008 and the introduction of clearing; while the heightened focus on interest rate swaps is achieving significant results that should continue in 2010.”
For further information please contact:
Susan Hinko, Global Head of Industry Relations
Tel: + 1 646 744 0410
susan.hinko@trioptima.com
About TriOptima
TriOptima is the award-winning provider of OTC derivatives infrastructure services including triReduce, triResolve, and the OTC Derivatives Interest Rate Trade Reporting Repository.
triReduce, the portfolio compression service for OTC derivative dealers, pioneers technology that eliminates risk and reduces operational and capital costs. Serving over 150 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 22 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 5.8 million trades representing over 70% 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 London, New York, Singapore, Stockholm, and Tokyo.
http:// www.trioptima.com