triReduce Credit
Relieving the pressures of explosive growth
TriOptima has been working with its subscribers to expand existing services and develop new services for credit derivatives dealers that ensure the most efficient back office processing possible. Dramatic growth in volumes, increased regulatory scrutiny and significant credit events have emphasized the need for dealers to manage their back office procedures, and TriOptima has been there to respond to both standard and unanticipated needs.
triReduce Credit offers regular termination cycles in single name and index swaps in USD, EUR and JPY. Supplementing the regular cycles is a series of credit event management services that facilitate the clearing and settlement process in the case of a default. These include special reconciliation and termination cycles, as well as settlement payment calculations for distressed names.
In 2007, triReduce credit introduced termination cycles for index tranches emerging market indices. These new cycles provide triReduce subscribers with a mechanism for eliminating some of the riskier transactions from their portfolios.
TriOptima's elimination of $5 trillion in notional outstandings in credit derivatives amounts to about 25% of market.s total outstandings according to the June 2006 BIS data. TriOptima has made a major contribution to reducing operations backlogs and mitigating regulatory concerns. According to the June 2006 BIS data, TriOptima had terminated notionals that represented 25% of the market at that time. In 2007, TriOptima continues to offer regular termination opportunities in credit default single name, indices, index tranches and emerging market indices.