TriOptima introduced its pioneering concept of multilateral early terminations to the market in 2003 with the first Euro interest rate swap early termination runs. Cycles in other major currencies including JPY, GBP and USD soon followed.

Over 157 participants 
triReduce Rates participants include global institutions active in all markets, as well as many regional dealers who are eager to participate in compression cycles in their local markets.

25 global currencies
In addition to the risk management and operational benefits of any triReduce cycle, the elimination of capital charges for transactions in emerging market currencies is a major result of TriOptima’s expansion into new global currencies.

$245 trillion and counting
Termination volumes in the interest rate swap market have been accelerating since 2007 with the addition of cycles within Clearnet LCH.SwapClear clearinghouse.  As of December 2012 over $245 trillion in IRS notional principal outstanding has been eliminated through triReduce.

Integration
TriOptima also maintains relationships with other key service providers to assist clients with their automation processes. Transaction data is received from MarkitWire, the confirmation platform for interest rate swaps, and termination data is sent back to them so they can update their customer records.

Another important initiative has been cooperation with LCH.Clearnet SwapClear, the clearinghouse for interest rate swaps. Together TriOptima and the SwapClear members have been terminating transactions that have been cleared but continue to reside in the clearinghouse, generating margin costs and operational activities.

Internal cycles
While most triReduce early termination cycles involve multiple counterparties for maximum benefit, some TriOptima subscribers have also recognized the benefits of tear-ups across their own trading books. This rationalizes institutional positions that have grown through merger and other market events reducing exposure and operations costs.