TriOptima today announced that it has won the Energy Risk Technology House of the Year award for its innovative triReduce and triResolve technologies. Over the past year TriOptima has increased its focus on the energy sector in anticipation of regulatory changes that look set to transform the risk management practices of participants in OTC energy derivatives markets.
TriOptima’s portfolio compression service for OTC derivative dealers, triReduce, pioneers technology that eliminates risk and reduces operational and capital costs. Energy Risk was impressed by the efforts TriOptima has made to extend this service to the energy sector. Last August, TriOptima conducted an energy pilot to assess the scope for portfolio compression across a range of energy asset classes. The pilot revealed that well over 80% of the energy trades could be terminated. Successfully demonstrating the major potential for significant reductions in outstanding trades in the energy sector, TriOptima has since the pilot offered live cycles in European and UK power, European and UK natural gas, and coal. There are currently 41 participants on triReduce Commodities, half of which are larger banks and the other half major energy houses.
Energy Risk also commended the progress TriOptima has made in adapting its triResolve network for the energy market community. TriResolve provides counterparty exposure management services including proactive portfolio reconciliation of OTC derivative portfolios, margin call management, and dispute resolution. The portfolio reconciliation tool in particular is proving of increasing significance in the shifting regulatory environment and TriOptima has taken important steps towards extending this service to the energy sector. A pilot group of 15 leading energy houses and financial institutions implemented triResolve’s portfolio reconciliation service process in 2011.
James Hollands, head of triResolve sales highlighted that, ‘With proposed regulations in the US and Europe requiring proactive portfolio reconciliation across the OTC derivatives landscape, including participants in the energy markets, the pilot validated the importance of triResolve to the energy community and attracted several new energy majors to the service.”
Mattias Palm, business manager, commodity markets at TriOptima said, ‘We are delighted to have won this award, and Energy Risk’s recognition for the efforts we have made to strengthen our offering to the energy markets over the last year. We see great potential for the use of our triReduce and triResolve services by the energy sector and believe they will play an increasingly important role in risk management for the energy industry”.
Judged by Energy Risk's editorial panel and an external industry expert, the Energy Risk Awards 2012 honour those companies that are continuing to advance the energy markets through innovation, experience and sheer persistence.