TriOptima eliminates ¥79 trillion notional in latest JSCC Japanese Yen interest rate swap compression cycle

PUBLISHED BY:
Yutaka Imanishi

DATE:
2015-07-02

TriOptima announces today that 18 financial institutions, including 7 major Japanese banks, have reduced notional principal outstanding in Japanese Yen (¥) interest rate swaps (IRS) by ¥79.02 trillion ($641billion USD) in JSCC’s third triReduce compression cycle.

New York/London – July 02, 2015 TriOptima announces today that 18 financial institutions, including 7 major Japanese banks, have reduced notional principal outstanding in Japanese Yen (¥) interest rate swaps (IRS) by ¥79.02 trillion ($641billion USD) in JSCC’s third triReduce compression cycle. The notional reduced has doubled since the last JSCC cycle in March 2015 due to the increased participation of Japanese banks.

Compression cycles have reduced JSCC ¥ IRS notional outstanding by ¥118 trillion since January 2015.

“As anticipated, the growing participation of Japanese banks has increased positively our compression results,” said Takehiro Hosomura, director of OTC derivatives clearing services at JSCC. “And we expect further increases as banks adopt compression as business as usual, and unlinking is introduced.”

“We continue to work with JSCC and with all participants to facilitate compression in the clearinghouse,” said Yutaka Imanishi. “We are pleased with the cumulative effect of these cycles and expect even greater results once trades in JSCC are unlinked. JSCC triReduce compression is a powerful tool for risk management as well as for operational cost reduction.