An unidentifiable match between set of identical trades. These require the user to identify individual trade matches. This is a matching term used in both triReduce and triResolve.
Typically an interest rate swap where the notional (upon which the coupon payments are calculated) decreases during the life of the swap. A triReduce Rates eligible instrument type.
triResolve supports all OTC derivative asset classes, including Credit, Interest Rate, Commodity and FX, and all product types, from plain vanilla trades to complex structures.
The date on which a party assumes ownership of a trade side.
The date on which bonds are issued. Government issued Debt, in the form of Bonds, is usually issued through an auction process, where anybody is eligible to bid for a bond.
Bundesanstalt für Finanzdienstleistungsaufsicht, The Federal Financial Supervisory Authority.
International banking regulations first issued in 2004 which specifies minimum required size of capital reserves for banks. TriOptima, via triReduce, can help banks reduce this required amount of capital reserves and thereby reduce the capital costs associated with trading.
A risk arising from a difference in trade economics on two, otherwise offsetting trades.
Ability to view and compare your own trade valuation to an industry average valuation curve for single name credit trades and standard indices.
triResolve provides a comprehensive margin management service covering all aspects of the collateral management workflow.
Bank for International Settlements. An international organization which fosters cooperation among central banks and other agencies in pursuit of monetary and financial stability.
Where the transaction details of a matched trade are different, triResolve will identify and facilitate tracking of such differences for swift resolution.
The convention for adjustment of event dates relating to a financial transaction towards a valid business day. The most relevant conventions are: - Following: where the date is adjusted to the first following day that is a Business Day - Modified Following: the same as ‘Following’, unless the first following Business Day is in the next calendar month, in which case that date will be the first preceding day that is a Business Day - Preceding: where the date is adjusted to the first preceding date that is a Business Day
In triReduce Credit terms, this refers to the ‘Buyer’ of protection (or the ‘payer’ of interest payments). In triReduce Rates, this refers to the payer of the fixed leg.
A transfer of money, receiving money means positive cash flow while paying means negative cash flow.
A tolerance defining the maximum amount of cash to be paid or received in an Unwind Proposal. See Unwind Proposal.
Central Clearing Party.
U.S. Commodity Futures Trading Commission. Created under an amendment to the Commodity Exchange Act in 1974. Its mission is to protect market users and the public from fraud, manipulation, and abusive practices related to the sale of commodity and financial futures and options, and to foster open, competitive, and financially sound futures and option markets.
Credit Implementation Group. Reports into Credit Steering Committee.
A close match is a mismatch on one or two fields of lesser importance. It is a matching term used in triReduce.
Chicago Mercantile Exchange.
Commodities Implementation Group, under ISDA.
An asset posted to or by a counterparty to mitigate its counterparty credit risk.
The issuing of a demand for margin / collateral is sent to a counterparty following the calculation of the collateral requirement.
The process by which a counterpart disputes a collateral call.
Collateral that is due to be sent or returned but has not yet settled.
A swap which compounds interest over more than one fixing period.
TriOptima, through its triReduce service, offers market neutral compression of trades and gross notional. See also Multilateral Termination.
A statistical measure of how two market instruments move in relation to one another. Positive correlation implies that both instruments move together. Negative correlation implies that both instruments move in the opposite direction to one another.
Commodities Steering Committee, under ISDA.
A risk arising from uncertainty in a counterpart's ability to meet the obligations set out in a contract.
Net MtM per counterparty. TriOptima offers services to efficiently manage and reduce counterparty exposure.
triResolve allows subscribing parties to calculate their current exposure against each subscribing party at a group, entity portfolio or trade by trade level.
Risk arising from potential default and hence credit-worthiness of a counterparty. TriOptima offers services to efficiently manage and reduce counterparty risk.
A tolerance used to constrain risk impact in counterparty relations.
During linking in a triReduce cycle, this term is used for trades that are submitted by the counterparty, but not by the participant.
A contract entered into by a buyer and seller. The buyer purchases credit protection on a debt obligation from the seller. The buyer pays a regular premium for the privilege.
An event relating to the deterioration in credit worthiness of an underlying entity to a credit derivative.
A tolerance defining the maximum acceptable impact on the Credit Spread Delta risk.
See Cross Currency Swap.
A financial contract where the buyer and seller agrees to swap floating cash flows between two different currencies, during a defined period of time. See Cash Flow.
ISDA's Credit Support Annex, a legal agreement between the two parties to an OTC derivative transaction which contains the agreed collateral terms under an ISDA Master Agreement.
triResolve facilitates reconciliation of collateral balances between counterparties to identify any non receipts or errors in the amount of collateral posted or received.
Reconciling trade population characteristics and valuations daily minimizes misbookings and decreases the number of collateral disputes significantly, reducing credit and operational exposures.
Credit Steering Committee, under ISDA.
Credit (Counterparty) Valuation Adjustment. A common measure of counterparty credit risk.
triResolve has the functionality to display data on different levels of detail where it can be grouped and compared based on user criteria.
Commodity market terminology for the physical delivery location relating to a transaction. An example for US Natural Gas is Henry Hub.
The sensitivity to a change in the rate used to discount future cash flows.
triResolve incorporates a stream lined work flow for Dispute Resolution, the recommended ISDA procedure for resolving complex disputes.
A distant match is a mismatch on trade details that could have a major economic impact. It is a matching term used in triReduce.
A legal confirmation document clause type. Typically refers to the settlement conditions for Credit Derivatives.
Dress Rehearsal. This phase of a triReduce cycle provides participants with a test proposal giving them an indication of the risk movements they can expect to see in Live Execution.
Depository Trust & Clearing Corporation. TriOptima is interoperable with the DTCC for automated terminations and also provides triReduce Credit participants with TIW extracts relating to cycles.
A commonly used term for a measure of risk and stands for the Dollar Value of a one unit change in the underlying. It is used across a number of different asset classes.
see Event Determination Date.
Effective Expected Positive Exposure.
The European Federation of Energy Traders. A group of more than 90 energy trading companies dedicated to stimulate and promote energy trading throughout Europe.
An exchange of payments relating to an energy commodity.
For Credit Derivatives, it relates to the date on which the Credit Event Notice is 'served'.
A transaction that takes place on an exchange trading platform where buyers may meet sellers anonymously.
The right or privilege of a state to exercise authority in certain circumstances beyond the limits of its territory.
Financial Accounting Standards Board.
The Financial Conduct Authority (FCA). The regulator of the financial services industry in the UK.
Futures Commission Merchant.
A financial contract where the value/pay off is strictly dependent on an underlying asset.
For an Interest Rate Swap, a fixing is the float rate for the current/next coupon period.
See FX Swap.
A non-standardized, and typically over-the-counter contract, obligating obligation the owner to either buy or sell an underlying financial instrument at a pre-determined time in the future and at a pre-determined price.
An agreement to fix a rate of return for a period of time commencing in the future.
Financial Stability Board. Established to coordinate the work of national financial authorities and international standard setting bodies, at the international level.
A trade that is struck off from a portfolio as part of a triReduce unwind proposal.
Relates closely to Interest Rate Risk, but deals specifically with the method of handling capital in- and out-flows.
A standardized and exchange traded contract obligating the owner to either buy or sell an underlying financial instrument at a pre-determined time in the future and at a pre-determined price.
An agreement to buy or sell currency in the future and at a pre-determined price.
Buying or selling currency at the current market rate under regular market settlement conditions.
An FX Forward with an additional reverse FX spot trade upfront.
Group of 14 international banks that have signed up to meet the NY Fed's regulatory commitments.
The amount by which the market value of the collateral is reduced to account for price volatility and liquidity. Also known as the valuation percentage.
A risk management or trading technique where fluctuations in profit or loss are limited or minimised. Hedging can be achieved by taking opposing positions in two positively correlated instruments.
A feature of the triReduce Credit service allowing participants to group multiple books together, thereby achieving greater termination efficiency.
International Accounting Standards.
ISDA Industry Governance Committee.
In terms of credit derivatives, IMM dates are the four quarterly maturity dates: 20th March, 20th June, 20th September and 20th December. In terms of futures and options and swaps, IMM dates are four quarterly maturity dates: the third Wednesday in March, June, September and December.
The amount of collateral required over and above the mark to market of a portfolio. It is designed to cater for changes in the market value of a portfolio between margin calls.
Sensitivity of the value of a trade to a related interest rate. It may be expressed as a profit or loss measured by a single unit uptick in the interest rate from a valuation curve. A popular measure of interest rate risk, commonly known as price value of a basis point (PV01) or dollar value of a basis point (DV01).
A tolerance defining the maximum acceptable impact on Interest Rate Delta risk.
In its basic form, a commitment to exchange of fixed interest payments and floating (variable) interest payments in the future.
International Organization of Securities Commissions.
International Swaps and Derivatives Association, Inc. The global trade organization that represents participants in the OTC derivatives markets, and designs and maintains the industry-standard contracts (ISDA Master Agreements) for trading OTC derivative transactions.
ISDA's Collateral Infrastructure Working Group.
ISDA has published a set of minimum field requirements for collateralized portfolio reconciliation.
ISDA best practices document for the collateral management process following the "Roadmap for Collateral Management", an action plan to re-examine the collateral management function based on the market events of 2008.
triResolve supports ISDA's recommendations for portfolio reconciliation.
Central Counterparty. triReduce Rates performs regular termination events on cleared Interest Rate Swap trades.
The first phase of a triReduce cycle, where participants submit trades that are eligible for termination. TriOptima forms a legal connection between trade sides that form a deal previously incepted between two institutions.
A risk arising from a lack of tradable volume in a market.
Margin calls can be issued to a counterparty via the triResolve web site using the Margin Management application.
Margin management represents the comparison and collateralization of the daily valuation changes in a portfolio of financial transactions outstanding between two counterparts. triResolve’s Margin management functionality facilitates this process by providing transparency and a secure communication platform where clients can manage both incoming and outgoing margin calls in an efficient manner with full audit trails. triResolve provides early visibility of potential problems, providing maximum time to investigate and solve them while allowing users to quickly process straightforward margin actions.
An electronic trade capture and confirmation platform. triReduce Rates is interoperable with MarkitWire for trade terminations.
The net present value of a derivative trade. Typically calculated using the concept of cash flow discounting.
A tolerance used to constrain the amount of Mark-to-Market realized in an Unwind Proposal.
A match where all key data fields match or where insignificant discrepancies have been identified.
triResolve will identify trades that closely correspond to an equivalent trade in your counterparty's portfolio but one or several key data fields do not match.
triResolve provides a match quality rating via the use of stars. A 5-star rating is a perfect match while a 1-star rating represents a match with three major differences or more.
When a match result is published in triResolve users can review established matches and each match is assigned a status.
A minimum size threshold below which calls for collateral will not be made.
The triResolve service includes highly flexible reporting that can be customized to fit a wide range of purposes and departments within a firm.
TriOptima is the producer of the G14 dealer portfolio reconciliation metrics that is provided to the regulators and Federal Reserve each month.
A trade tear-up exercise (or compression process) involving more than two parties. TriOptima offer a multilateral-termination service, triReduce.
A tolerance used to constrain the amount of Notional maturing on specific end dates; used in triReduce Credit.
Trades between two institutions that are not governed by the terms of a CSA.
Extension to the triResolve service, which allows non-subscribing firms to submit their portfolios to triResolve for secure and automated reconciliation with their counterparties.
The principal amount on a derivative contract. The amount is used a reference upon which interest is calculated.
A notional amendment of an existing trade as part of a triReduce unwind proposal. A Notional Revision can increase or decrease the notional on a given trade.
OTC Derivatives Supervisors Group. The group is chaired by the New York Fed and meets annually with other supervisors as well as major OTC Derivative market participants.
A risk which arises from a company's people, system or processes. TriOptima can, through its termination service, reduce the ticket count and thereby the amount of manual steps required resulting in less operational risk.
A mathematical technique for determining the extreme value of a function of several variables subject to a set of constraints.
Operations Steering Committee. Replaced the Operations Management Group (OMG) in 2009.
A derivative transaction taking place between two parties without the involvement of an exchange to facilitate the trade ("Over the Counter").
An Interest Rate Swap that resets its floating leg one-day interest rate on a daily basis. The floating leg compounds and pays its cash flow in line with the fixed rate payment frequency.
A notional reduction of an existing trade as part of a triReduce unwind proposal.
The party to a trade that is required be the fixed interest rate payer in a derivative transaction. Typically, the Buyer.
Primary Clearing Member.
Potential Future Exposure. A measure of the maximum credit exposure expected over a specific period of time.
The most basic form of a financial derivative contract.
TriOptima's triReduce service offers portfolio compression on OTC Derivatives.
Portfolio reconciliation is a process of mutual trade and records comparison. It is a key process to manage and reduce operational risks. Proactive reconciliations of portfolios ensure high integrity in trade bookings as well as valuations.With a secure and automated trade upload, triResolve effectively matches even complex structures using sophisticated business logic. The result is presented in a common, online view for timely resolution of discrepancies and disputes.
triResolve supports all OTC derivatives across all asset and product classes, from plain vanilla to bespoke products. See Asset Class.
Used in triReduce Commodities to denote the contract size.
The party to a trade that receives the fixed rate of interest in a derivative transaction. Typically, the Seller.
Ability to view past reconciliation results and the reconciliation progress over time.
triResolve offers extensive MtM value analysis such as comparison in absolute as well as relative terms to highlight problematic areas.
A trade, delivered as part of a triReduce Credit unwind proposal. The sole purpose of this trade type is to rebalance risk that would be shifted by solely booking terminations.
The risk arising from floating interest rates being fixed (known as 'resetting') for their next coupon period. See Fixing.
An agreement between an entity and its creditors to rearrange its liabilities. Often used as a preferred alternative to bankruptcy or liquidation. Can be considered as a Credit Event in some types of Credit Derivative.
Rates Implementation Group. Reports into Rates Steering Committee.
Pertaining to a derivative trade, the date on which one coupon is paid and the next coupon period begins. For CDS Indices, it can also refer to the launch date of a new series.
In order to identify and categorize causes for common errors or misbookings triResolve provides extensive functionality for identifying and analyzing root causes.
Rates Steering Committee, under ISDA.
Risk Weighted Assets. The basis for calculating the minimum required capital reserve required for a bank. TriOptima, through its triReduce termination service , can help banks reduce the required capital reserve and capital costs. See Basel Regulations.
U.S. Securities and Exchange Commission. Their mission is to protect investors, maintain fair, orderly, and efficient markets and facilitate capital formation.
triResolve has the functionality to reconcile a very wide range of different financial products, including Repos and Stock Borrow / Lend, Collateral Balances or trades not under CSA agreement.
In Credit terms, this refers to the ‘Seller’ of protection (or the ‘receiver’ of interest payments).
The date upon which flows of cash and/or securities are exchanged following a financial transaction.
The rate that can be achieved in the cash market (otherwise known as the spot market) under regular settlement conditions.
triResolve distinguishes between a manually created and an automatic match. The star rating will be in green for a manually created match and gold if the match is automatically created.
triResolve is interoperable with other matching platforms in order to facilitate investigation of cross related data and highlights any such discrepancies.
The Trans-European Automated Real-Time Gross Settlement Express Transfer System.
The day on which a trade termination becomes effective.
Reconciliation of trades from three different sources; for example the principal, its counterparty and a custodian.
Tool to constrain the magnitude of impact due from an Unwind Proposal. See Unwind Proposal for more info.
triResolve includes highly flexible customizable filtering across entire portfolios on a trade detail level to break out sub-sets of trades for detailed analysis.
A temporary storage area for trades and or matches.
As a community platform, triResolve supports different types of client communication on the platform to facilitate the resolution process.
The systemic risk reduction service operated by TriOptima AB.
A multilateral portfolio compression and early termination service operated by TriOptima AB.
The proactive portfolio reconciliation service and exposure management service from TriOptima.
triResolve retains global unique match identifiers for each match established on the service.
An asset , index or rate from which the value, cash flows or deliverables under a derivative transaction are calculated.
The vast majority of reconciliations are performed between subscribers to the service. triResolve also supports so called unilateral reconciliations, where the subscriber uploads data on behalf of the counterparty after receiving the counterparty's consent.
Trades submitted by a party that are not submitted by their counterpart.
triResolve will quickly identify any trades where a satisfactory match has not been identified, these are a single sided match where no matching counterpart trade has been identified.
Where both parties to a trade mutually agree to settle or terminate prior to the normal maturity of the trade, normally involving a cash settlement.
A proposal containing a package of transactions to carry out, that will have the effect of trade reduction and/or notional reduction.
A fee paid typically on a credit derivative transaction, where the amount relates to a differential between the fair coupon and the fixed coupon on the trade. This results from product standardization in the credit derivative markets.
The date upon which a cash payment relating to a financial transaction is completed.
Vendor Initiated Terminations.
The process of diminishing the recorded value of a security to better reflect its lower market value.
West Texas Intermediary.
Aggregate amount of coupon to be paid or received during a year, for a contract.
A tolerance specifying the maximum amount of Yearly Coupon to be shifted in an Unwind Proposal; used in triReduce Credit.