TriOptima's multilateral approach to portfolio compression is helping the sell-side and buy-side alike to reduce ICE Libor risk, optimise capital, and enhance operational efficiency.
Vikash Rughani, triReduce and triBalance business manager, speaks with Risk.net about key industry concerns around the transition away from Libor, including how the discontinuation deadline will be impacted by the Covid‑19 pandemic, the benefits and challenges of pre-cessation triggers, and how firms are preparing for ‘big bang’ discounting switches.
Founder of the US state of Pennsylvania William Penn once said that “time is what we want most, but what we use worst.” For financial institutions, the recent decision by regulators to delay the final two phases of the uncleared margin rules (UMR) certainly provides additional time, but it needs to be used effectively to seek out operational efficiencies across the business.
triReduce benchmark conversion: Transitioning OTC IR swaps onto the SONIA benchmark
Raf Pritchard, head of triResolve, sits down with Risk.net to discuss the initial margin calculation and collateralisation challenges for firms coming into scope under phases five and six of the uncleared margin rules.
TriOptima, the leading multilateral compression provider that lowers costs and mitigates risk in OTC markets, today announced that counterparties using the triReduce CLS FX compression service have eliminated $9.1 trillion of gross notional value from their FX forward portfolios in 2019. A new record for the service, this equates to an annual increase of 71%.
Vikash Rughani, business manager at triReduce and triBalance, outlines a new approach enabling buy- and sell-side participants to optimise the transition of legacy ICE LIBOR over-the-counter (OTC) swaps contracts to alternative reference rates.
TriOptima completed the largest-ever compression of FX forwards. Bilateral net reductions increased by 135%, 40% more gross notional compressed than before, a testament to all of the firms who participated.
TriOptima successfully completed the first multilateral optimization of commodity SIMM IM exposures between major dealers within triBalance’s industry leading network. This represents the first optimization cycle across both the FX and commodities exposure silos simultaneously, using FX and Gold NDFs.
Uncleared Margin Rules are coming.
Industry estimates suggest that over 1,000 clients will become subject to initial margin compliance for their uncleared derivatives by September 2020.
To get up-to-speed on uncleared margin rules, join CME Group's Jack Callahan as he helps you understand key topics, including:
During this live session we discussed the solutions available to help an orderly and effective transition of LIBOR fixings beyond 2021. Since the Webinar we have been contacted by a large number of attendees wishing to obtain more information regarding the transformation in general and next steps.
We have produced a triReduce Benchmark Conversion Q&A sheet with answers to the questions that were raised during the webinar.
トライカルキュレートは、セルサイド・バイサイドを問わず様々な規模の金融機関様に、費用対効果の高い計算・分析サービスを提供してまいりました。弊社は、トライカルキュレートの追加機能開発を継続的に行っており、２０１８年には複数の賞にノミネートされ、受賞いたしました。
triCalculate’s co-CEO Martin Engblom recently sat down with XVA expert Jon Gregory for a one-hour discussion on the current state of play for XVA.
Their adept discussion provides professional insight and illumination on such topics as CVA, FRTB, MVA, FVA, the concept of optimisation, regulatory capital, KVA, thoughts on where XVA’s are headed next, and much more.
As we commence 2019, we would like to thank you for your support throughout the previous year and provide insight into what the future holds for our portfolio reconciliation, collateral management and initial margin services.
TriOptima won the category for the best collateral management platform for the first time at this year’s Buy-Side Technology Awards. Victor Anderson chats to Neil Murphy about how regulation has shaped collateral management practices across the buy side in recent years, how the firm’s triResolve Margin platform works, and what the firm believes helps to differentiate triResolve Margin from other offerings.
Thanks to our customers across the sell- and buy-side, triCalculate has seen substantial and sustained global growth over the last couple of years. In this blog post we’ll round up some key highlights from 2018.
Following triCalculate’s win in the WatersTechnology Buy-Side Awards as the Best Buy Side Pricing/Valuation Service, triCalculate co-CEO Thomas Griffiths sat down with Waters Editor Victor Anderson to discuss how we help buy-side customers solve their infrastructure challenges and reduce operational burden.
David White, Head of triResolve Sales, joins Risk.net to discuss the challenges of the initial margin phase in and the role of automation in the drive for more efficient collateral management processes.
The new Initial Margin rules require the posting of initial margin for new OTC derivatives trades in every bilateral trading relationship. The funding of this initial margin comes at a cost, and MVA is the expected cost of funding initial margin all the way to the maturity of the longest trade in the netting set.
In a recent market survey from triCalculate and Risk.net on the state of the XVA space, market participants shared how they are grappling with the conceptual and practical challenges of MVA, which XVAs are most important now, and how cloud-based solutions could be beneficial for XVAs.
To remain competitive and minimize risk, the front office needs tools be able to measure OTC derivatives trading costs and make consistent pricing and valuation decisions.
triCalculate’s sophisticated Probability Matrix Method uses common transition probability matrices for generating scenarios and pricing netting sets, allowing for consistent simulation and pricing models when computing and hedging XVAs.
But what’s the issue with alternate methods?
Traditional XVA systems separate the tasks of generating market factor paths and pricing netting set values, ultimately leading to XVA inaccuracies and mismatched hedging strategies.
In this whitepaper, we investigate the errors produced when inconsistent models for simulating risk factors and pricing netting set values are used.
Despite the buzz about the cloud, why is there still apprehension?
Don't miss out on this opportunity to join industry experts as they explore the impact of the initial margin rules and discuss how your firm can work towards achieving operational excellence.
THE PANEL
Helen Bartholomew Editor-at-large, Risk.net
Neil Murphy Business Manager, triResolve
Chetan Joshi Margin Reform, Standard Chartered Bank
Tony Ashraf Collateral Management, BlackRock
John Pucciarelli Market Infrastructure and Technology, ISDA
As part of the Risk.net XVA Special Report 2018 Martin Engblom discusses the biggest concerns currently about how the industry manages XVA and ways the challenges can be resolved.
triCalculate can provide your SIMM™ sensitivities quickly, easily and cost-effectively. Join this webinar to discover how triCalculate:
This whitepaper reflects on how market participants have evolved to meet their un-cleared margin regulatory obligations and how operational excellence is quick and easy to achieve with triResolve Margin.
Discover why leading buy-side firms are turning to triResolve Margin to ensure operational efficiency.
View our short video to discover collateral management, reinvented.
The trade reporting obligations of EMIR RTS2 are complex and pressure is mounting on firms to ensure their data is validated and accurate. To overcome the challenges, many French firms have turned to triResolve to help them achieve transparency and ensure their reported data is accurate.
Clients include Banque Palatine, Natixis, Exane Derivatives, Airbus Group and Banque Federative du Credit Mutuel.
XVA is a term used to reflect the various ‘valuation adjustments’ that are made to the price of an OTC derivative transaction to accurately value the costs of the contract.
We're pleased to introduce triReduce Trade Revision, the latest evolution in multilateral portfolio compression.
Similarly to Dodd Frank in the US and EMIR in Europe, the impending regulation highlights the need for regular, proactive reconciliation of your OTC derivatives portfolio.
triResolve Margin has been adopted by a vast variety of firms globally, including dealer banks, regional banks, funds, asset managers, asset servicers and corporates.
Our recent case study highlights how we worked with a major asset manager to streamline their collateral process.
KVA calculations determine the lifetime costs of capital as part of the pricing of an OTC derivative trade. But what does that really mean?
View this webinar to learn about KVA in the context of counterparty credit risk and the cost of capital, how the lifetime cost of capital can be efficiently calculated, and more.
triResolve Margin has been adopted by a vast variety of firms globally, including dealer banks, regional banks, funds, asset managers, asset servicers and corporates.
Our recent case study highlights how we worked with a global dealer bank to overcome regulatory demands and streamline their collateral process.
View triResolve's latest video to see Jenny Nilsson, Head of Product Marketing, and David White, Global Head of Sales, discuss the changing landscape of collateral management and what firms can do to increase efficiency and achieve compliance.
As part of market participants’ activities to achieve compliance with accounting rules and best practice, they need to implement solutions to manage Credit Valuation Adjustments (CVA) and other XVAs in their portfolio valuations.
The phased introduction of bilateral initial margin is affecting institutions with gradually decreasing size. Institutions who stand to benefit most from a central analytics service are coming into scope, and as a response, triCalculate has added MVA to the catalogue of risk metrics.
On March 1st, firms were given an effective six month grace period to achieve full compliance with the non-cleared variation margin rules. In what seems like the blink of an eye, we’re now a mere ten days out from the day your firm needs to be compliant.
Couple the time pressure with existing business demands and the need for an easy to implement collateral management solution becomes more apparent than ever.
On March 1st, firms were given a six month grace period to achieve full compliance with the non-cleared variation margin rules. In what seems like the blink of an eye, the September deadline has now passed and firms need to look to the next regulatory milestone, January 3rd 2018.
Gain efficiency over your collateral management process with triResolve Margin.
Join this webinar to discover:
2018年1月3日より、為替フォワード取引がEU変動証拠金規制の対象取引に追加されます。
規制概要、貴社への影響及び対応方法におきましては、以下のQ&Aをご参照下さい。
triResolve QuickPort is the free and efficient way to respond to portfolio reconciliation requests from your OTC counterparties.
Join this webinar to discover:
日本銀行から公表されている日銀レビュー２０１７年6月号「最近のOTCデリバティブ市場の動向」において、一括コンプレッションによるOTCデリバティブの削減が紹介されています。NEXTriOptimaによる金利スワップの一括コンプレッションの解約額（日本語版5ページ、図表9）がレポート中で紹介され、「グローバル合計では2014年以降、本邦金融機関では2015年以降、解約額が大きく増加しており、特にグローバル合計では、金利スワップの残高の6割程度に達して」おり、「こうした動きがこの時期のOTCデリバティブの残高減少に寄与している」と説明されています。ご一読いただければと思います。
Whether you are caught in the new margin regulation for OTC derivative trading or not, the pricing implications affect your daily trading.
Join this webinar to discover:
As of January 3rd 2018 FX forwards will need to be collateralised under the European margin rules.
We have created a brief Q&A which highlights the key components of the regulation, what it means for your firm and how you can achieve compliance.
JOHN LOTHIAN | Sometimes the machine needs a reboot. Such is the case with NEX Group, the former ICAP group minus the ICAP voice brokerage business.
Post-trade business reorganises with a focus on cost-cutting and simplification.
Collateral management has typically been a fragmented and manual process. Join this webinar to find out how we are reinventing collateral management with triResolve Margin and get a latest update of the service in a live demo.
Accuracy of regulatory trade reporting is still a problem for the industry. Join this event to find out how triResolve can help align the reported data in one central place and learn about our cutting-edge new functionality in a live demo.
Three firms have signed up to use the tool, which calculates MVA across 100,000 scenarios.
If you are an Asset Manager, Hedge Fund Manager or Corporate Treasurer, please join us and discover:
Today’s OTC derivative trades no longer rely on a market quote but include CVA, DVA and FVA in the pricing calculation. This means that the counterparty’s creditworthiness, your cost of funding and your collateral agreements all contribute adjustments to the final price of a trade.
Error-strewn, duplicated and inconsistent – reporting of over-the-counter derivatives contracts data to trade repositories was supposed to lead to transparency and maintain global financial stability. As Jenny Nilsson, product marketing executive at triResolve, the portfolio reconciliation and reporting validation service from TriOptima, explains, that goal seems a long way off. The industry must proactively reconcile data with its counterparties and work together to ensure data accuracy.
triCalculate can help assess the cost of entering into a collateral agreement which will directly affect the pricing of an OTC derivative. As new margin rules are implemented in the US (September 2016) and Europe (Spring 2017), triCalculate can assist in the transition to a new or upgraded collateral relationship.
Recognising the importance of accuracy in public reporting, triCalculate now incorporates a mathematically sound and easy to produce methodology that splits the CVA of a netting set into a value for each of the underlying trades to accommodate new balance sheet reporting requirements.
In a bid to increase transparency and facilitate regulatory oversight of the OTC derivative market, the introduction of mandatory reporting and data repositories is well intentioned. However, despite a huge effort from the industry to report their trade data, challenges persist.
There are many opinions in the industry when it comes to calculating wrong way risk (WWR).
David White, Global Head of Sales, triResolve discusses the key challenges of the non-cleared margin rules and what TriOptima are doing to help.
Collateral management is changing, are you prepared for the new rules? View TriOptima's short film to understand the impact of the new rules and gain insight into how you can overcome the challenges.
In their continued efforts to make the financial system more stable, regulators are introducing new margin requirements for non-cleared OTC derivatives, effective 1st September 2016.
With regulatory pressures mounting and firms striving to keep costs down, Thomas Griffiths of triCalculate outlines the top 5 challenges of effectively calculating XVA.
KPMG | Is Asia Pacific ready for margin requirements for non-centrally cleared OTC derivatives?
Post-crisis regulations mandate the use of risk mitigation activities like portfolio compression, portfolio reconciliation, trade reporting, central clearing, and margin management to bring stability and transparency to the OTC derivative markets. Mireille Dyrberg, COO of TriOptima and Peter Weibel, CEO of TriOptima’s triReduce service discuss their firm’s network solution approach to solving the challenges of efficient and effective risk mitigation.
For the past several years, derivatives conferences have been all about regulation. But as Dodd-Frank, MiFID II and other global regulations move through the rulemaking phase to implementation and beyond, the focus has shifted from regulation to innovation.
Innovation, creativity and adaptability have characterised the over-the-counter derivatives industry since the first interest rate swap was executed between IBM and the World Bank in 1981. As the market for OTC derivatives grew, the need for better post-trade management also emerged, and TriOptima’s multilateral early termination service, triReduce was an early leader in addressing that need.