triResolve
Proactive portfolio reconciliation transforms the industry
The launch of triResolve in 2006 became the turning point in portfolio reconciliation for all OTC derivative transactions under the ISDA credit support documentation. Previously a reactive process that followed collateral disputes, portfolio reconciliation is now a proactive process that addresses portfolio differences before collateral disputes arise. Active users of triResolve are able to analyze their counterparty credit risk exposures rapidly focusing on important mark-to-market differences. When a collateral dispute does arise, triResolve users can identify its source immediately and resolve it quickly, communicating with counterparties directly online to minimize unnecessary counterparty credit risk exposure.
triResolve subscribers include all of the G15 institutions in addition to numerous other banks, a range of buy-side institutions and investor service organizations. More than 5.8 million trades (single counted) for over 1900 legal entities are reconciled on triResolve, the majority on a daily basis. triResolve reconciles OTC derivatives across all asset classes including short-term foreign exchange transactions, forward rate agreements, energy swaps, credit swaps, options, interest rate swaps, cross currency swaps, structured trades, etc.
Managing volatility and exposure
Using triResolve regularly substantially reduces the time spent reconciling as automatch rates reach 99%. As portfolios are reconciled weekly across asset classes, only differences in new trades or differences originating out of volatile market conditions will appear. triResolve enables an institution to insure proper collateralization in an environment of increased default risk.
In the October 31, 2008 industry letter to the NY Fed, industry participants committed to implementing weekly reconciliation of collateralized inter-dealer portfolios exceeding 5000 transactions and to providing the regulators with reconciliation metrics. Joining the triResolve community enables any institution to meet this weekly reconciliation goal. And triResolve’s reporting functionality easily produces the metrics needed for both internal and external reporting requirements.
