TriOptima pioneered the introduction of multilateral portfolio compression in 2003 with the launch of triReduce Rates for early terminations in interest rate swaps. Multiple participants tearing up trades simultaneously across a number of counterparties is TriOptima’s groundbreaking innovation for OTC market participants with significant two-way trading flow.
Manage exposure & release capital
Multilateral compression of OTC derivative contracts is an effective and efficient process not only for
reducing notionals and eliminating trades but also for managing counterparty exposures and
releasing capital for redeployment in other parts of the business. Today TriOptima runs a compression
cycle every day somewhere in the global markets.
Initially successful with interest rate swaps in several currencies, TriOptima quickly went on to apply
the same expertise to the credit markets, tearing up credit default swaps tied both to indices and to
single names. The focus by the regulators on the credit markets resulted in even greater participation. triReduce Credit is responsible for reducing the notional oustandings in CDS transactions by over 50%.
TriOptima has expanded its range of compression services whenever the market has called for it. Volatility in the energy markets has created demand for triReduce Energy cycles in gas, power and oil swaps. Cross currency swaps are also being explored as a new product type for compression.
Eliminate notional outstandings
By December 2012, TriOptima’s 230 triReduce participants have eliminated $77 trillion in CDS notional outstandings and $245 trillion in IRS notionals. The impact on the interdealer notional outstandings as reported in the DTCC Trade Information Warehouse and the BIS statistical surveys has been significant.
triReduce is a web-based service that does not require any software installation or elaborate preparation. The service is accessible to institutions with a qualifying portfolio.
Interest Rate Trade Reporting Repository
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