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 15 of the
Fed 16 institutions in addition to numerous other banks, a range of
buy-side institutions and investor service organizations. More than 10
million trades in over 1400 bilateral relationships are reconciled on
triResolve, many on a weekly basis, some daily. 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 triRsolve 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 weekiy reconciliation goal. And
triResolve’s reporting functionality easily produces the metrics needed
for both internal and external reporting requirements.
