TriOptima announces today that its triReduce multilateral portfolio compression service has terminated more than $300 trillion in notional principal outstandings since its launch in 2003. Participation in triReduce’s 715 termination cycles for interest rate swaps and credit default swaps included 163 financial institutions around the globe.
- Interest rate swap terminations for both cleared and uncleared trades exceeds $227 trillion;
- Credit derivative compression reached $77 trillion and continues;
- TriOptima’s ongoing collaboration with LCH.SwapClear to date has eliminated $145.5 trillion in cleared interest rate swap terminations.
Eliminating unnecessary swaps in an OTC derivatives portfolio generates significant benefits for the participating institutions including reductions in counterparty credit risk, regulatory and economic capital costs, balance sheet risk-weighted assets and operational risk and costs, Lower notional principal outstandings also contribute to overall financial stability by reducing counterparty exposures and moderating the pace of growth in the market.
“We have worked closely with the industry to achieve these significant reductions,” said Peter Weibel, CEO of triReduce. “The recent work we’ve done with LCH.SwapClear for cleared trades has been very successful and good opportunities remain, but we also continue to offer compression for bilateral, uncleared transactions in various credit products and 25 interest rate swap currencies around the globe. With more than 125 cycles in 2012, we see an acceleration of interest as the new regulatory framework comes into effect.”
