triReduce
Multilateral terminations eliminate risk
Introduced in 2003, triReduce has quickly become an integral part of the industry's response to managing the explosive growth in back office processing. Unnecessary trades that inflate the balance sheet, generate operational costs and risks, and other capital charges are eliminated through mass multilateral termination of OTC contracts.
Cleaning up portfolios helps the institution and the market
Utilized by all institutions with significant trading flow in interest rate and credit default swaps, triReduce Rates and Credit terminations are recognized as an essential operational tool both by financial institutions and the regulatory community.
As cited in the BIS study, "New Developments in Clearing and Settlement Arrangements for OTC Derivatives" released March 16 2007 "...increasing use of multilateral termination systems…allow market participants to reduce counterparty credit, funding liquidity and operational risks." The study conclusions recommend that "...market participants should expand their use of new services that facilitate multilateral voluntary termination of trades." (pp. 37-38).
triReduce Energy continues to ramp up its participation base to include financial institutions, energy companies and energy trading companies; and 2007 should witness significant growth.