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NEX TriOptima, the award-winning infrastructure service provider for OTC derivatives, announces today that four major clients of the triReduce service have taken advantage of its new Trade Revision functionality in recent LCH SwapClear compression cycles. Several more banks are testing and are expected to adopt Trade Revision soon.
Trade Revision is the latest evolution in triReduce’s multilateral portfolio compression methodology. It enables clients to modify key economic parameters of their cleared OTC trades to improve their compression results. This additional flexibility provides a major step change in compression potential.
triReduce supports compression of clearing members’ house accounts as well as their clients, who access the service via their clearing brokers/FCMs. Uniquely, triReduce allows institutions to select their preferred compression methodology, including Trade Revision, notional upscaling or traditional compression all in the same cycle. triReduce’s liquidity pool of compression opportunities remains unrivalled.
Lear Janiv, Managing Director XVA Trading, Goldman Sachs, said: “Goldman is pleased to be one of the early adopters of Trade Revision. Working with NEX TriOptima on this new methodology has improved our compression efficiency within a smooth, scalable process.”
Michael Davie, Global Head of Rates, LCH, said: “We’re pleased to have worked with NEX TriOptima on the triReduce Trade Revision initiative to bring further operational and capital efficiencies to our members and their clients. The additional flexibility this provides is a positive enhancement to LCH’s compression offering and is another example of our ongoing efforts to collaborate to help improve customer experience.”
Peter Weibel, CEO of triReduce, said: “We are continually enhancing our industry-leading algorithmic solutions to maximise results. With Trade Revision we have not only enlarged the choice of compression methodologies but also dramatically increased the compression efficiency.”
