TriOptima, an infrastructure service that aims to lower costs and mitigates risk in OTC derivatives markets, has completed the first cleared inflation swap compression run at LCH SwapClear. Regulation Asia sat down with Guy Rowcliffe, Global Head of Optimization Services at CME Group, to understand how its TriOptima business is supporting the market need for benchmark migration, along with its other regulatory driven initiatives. TriOptima's multilateral approach to portfolio compression is helping the sell-side and buy-side alike to reduce ICE Libor risk, optimise capital, and enhance operational efficiency. This is a unique differentiator from other vendors as it streamlines the workflow for clients entering and completing compression cycles. We’re here to help you configure our services to work for you. The compression run was completed on June 19 with Euro cleared inflation swaps being compressed through the triReduce … If you look outside of compression services, the other key regulatory drivers for us in the region and globally are the uncleared margin rules. © 2020 CME Group Inc. All rights reserved. A reliable process underpinned by a robust legal framework. TriOptima AB. Search our directory for a broker that fits your needs. Compression is a process by which market participants can reduce … The strength of our existing network and liquidity pool, coupled with the breadth of our service, provides a mechanism for us to assist market participants who do not traditionally use compression, including the buy-side. Trusted A reliable process underpinned by a robust legal framework. Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX. Compression for us is one key area where we significantly help Asian clients and in fact, we are the only compression provider for AUD, CNH, HKD, JPY, KRW, MYR, NZD, SGD, THB, TWD. compression while limiting information disclosure among participants. In a situation where you have a lower inventory of transactions, and you’re governed by slightly different economics, the need to compress transactions has a different priority. CLS collaborates with TriOptima to deliver new FX compression service CLS Group (CLS), the global FX financial market infrastructure, and TriOptima, a leading provider of OTC derivatives post-trade risk management services and infrastructure, today announced they will be collaborating to deliver an FX forward compression service to the market. Rowcliffe: At TriOptima, we felt we had the basis for helping market participants transacting OTC swaps to achieve an efficient and orderly transition if they choose to move between benchmarks, based off our multilateral compression cycle pool, which forms the foundation of our existing compression services. It has been used in the OTC derivatives market for several years. Through year-end 2011, participating institutions have eliminated $164 trillion of notional principal outstanding with $56 trillion compressed in 2011 alone. The transition away from Libor, presents significant operational challenges for the many banks, swap dealers, hedge funds, asset managers, insurers and corporates to identify ways to convert their ICE Libor-linked trades in each jurisdiction. As of late last year, we included gold as one of the asset classes in a triBalance initial margin optimisation cycle, as well as running margin optimisation across FX and commodities at the same time. triReduce Low Touch Compression Tech Spec. Enhance the efficiency of your portfolio and maintain operational efficiency and reduce CDS exposure. This is important for two reasons: firstly, it also allows more aggressive compression of outstanding ICE Libor swap inventories, and secondly, it provides for the replacement of ICE Libor swap trades with alternative reference rates while also reducing benchmark risk within the same process. This has been extending to prime brokers and executing brokers, bringing buy-side trades into scope. Our triReduce team has invested a lot of time and effort into making the process itself more efficient, and we recently launched low-touch compression, the next evolution in the compression process which delivers improved usability, user transparency and full automation with API technology. The cycle took place on October 22, 2020 at LCH SwapClear. : 556584-9758. Our uniform compression process means your experience is the same regardless of the region or product. spreads and butterflies – and whether the trade was transacted via Compression (for cleared trades) ... A quick google search shows that the first TriOptima-CME Compression cycle … Launched in late 2018, low touch compression was quickly adopted by several of the largest banks as the next evolution in the compression process, delivering improved usability, user transparency and full automation together with API technology. After this first risk replacement compression cycle in sterling, triReduce will offer enhanced compression/benchmark conversion cycles in other currencies as the market need arises. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. Reducing PFE in SA-CCR and risk weighted assets. However, it’s not expected to be a one-time event - it is an iterative process, as various market participants gradually replace old ICE Libor exposures with new benchmark reference rates over time. Gain regulatory and economic capital benefits while reducing direct costs to the business without changing market risk positions. TriOptima provides frequent compression cycles in all the major Central Counterparty clearing houses in all cleared currencies. We run offshore compression for non-deliverable CNY, INR AND KRW and are the only provider of cross-currency swap compression for USD/JPY, USD/KRW, USD/HKD, USD/CNH, USD/AUD, USD/SGD. TriOptima announced today that it has completed the first portfolio compression cycle following a restructuring event under the newly-implemented ISDA 'Small Bang Protocol'. triReduce’s portfolio compression service maintains strong interfaces with all the major CCPs and infrastructure providers around the globe, so our clients seamlessly participate in compression with other market participants throughout the world. Trade futures and options on futures to their portfolio and set alerts to follow market!, Sweden the flow of Vendor-Initiated compression using TriOptima 6, more Asian based entities will come scope. Detailed operational flow of Member-Initiated compression is structured based on actual transactions and most diverse derivatives marketplace outstanding Project for. 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