Press release
March 24, 2009
TriOptima compresses $3.27 trillion USD IRS in largest risk elimination transaction to date
The largest elimination of interest rate notionals to date was completed in February, TriOptima, the supplier of post trade services for the OTC markets announced today. Derivative dealers reduced notional outstandings in USD interest rate swaps by $3.27 trillion using triReduce, TriOptima's compression service. With the largest elimination in interest rate notionals so far, the 20 participating banks demonstrated that they are meeting their commitments to the regulators to accelerate compression activity for interest rate swaps in 2009.
“Last year dealers eliminated $13.6 trillion in notional across 19 currencies in interest rate swaps. This one USD interest rate cycle alone represents 24% of the total for 2008,” said Brian Meese, TriOptima CEO. “In 2009, we will be offering even more compression cycles in IRS swaps to assist the dealers in achieving their goals. We are pleased to work together with the industry to improve the infrastructure and functioning of the OTC derivatives market.”
According to the most recent report of BIS statistics, there was $44.6 trillion in USD interest rate swaps outstanding among dealers on June 30, 2008, including cleared transactions.
In 2008, TriOptima offered 30 interest rate swap compression cycles in 19 currencies around the globe. It also offered 50 compression cycles in various credit default swap transaction types in USD, EUR and JPY which reduced outstandings by $30.2 trillion.
About TriOptima
TriOptima is the award-winning supplier of technology-leveraged post trade processing services including triReduce and triResolve.
triReduce, the portfolio compression service for OTC derivative dealers, pioneers technology that eliminates risk and reduces operational and capital costs. Serving over 120 bank and non-bank subscribers worldwide including the major local and global dealers in derivatives, triReduce is a critical tool for maintaining post trade processing efficiency.
triResolve is a network community service for proactive portfolio reconciliation of OTC derivative portfolios. Used by global dealers, regional banks and buy-side firms, triResolve currently handles more than 75% of all OTC derivative transactions globally. The service benefits trade control, settlement, documentation, collateral and counterparty credit risk functions. Web-based, interactive, with advanced matching and reporting capabilities, the triResolve service reconciles all OTC derivative products, from plain vanilla to complex structures.
TriOptima maintains offices in Stockholm, London, New York, and Singapore. TriOptima is a privately-held company owned by its employees and directors with a significant minority interest held by ICAP plc.
For further information please contact:
Susan Hinko, Global Head of Industry Relations
Tel: + 1 646 744 0410
susan.hinko@trioptima.com
Meredith Sledd Lindquist, Global Head of Marketing
Tel: +46 8545 25 664
meredith.sledd.lindquist@triopima.com