TriOptima and LCH.Clearnet's SwapClear complete the first South African rand compression cycle for cleared swaps
$284.3 billion eliminated in notional
New York/London – October 6 2014 TriOptima, leading provider of OTC derivative post trade services, announces that LCH.Clearnet's SwapClear members have eliminated $284.3 billion in notional in the first triReduce and SwapClear compression cycle for cleared South African rand (ZAR) interest rate swaps.
The $284.3 billion in notional represents 25% of SwapClear's outstanding ZAR notional and the 18,000 trade sides terminated accounted for 31% of its outstanding ZAR trade count.
With the completion of the ZAR cycle, TriOptima and SwapClear now offer multilateral triReduce compression cycles in 10 currencies. Since May 2014, five currencies have been added, beginning with AUD and CAD in June, HUF* in July, PLN** in August, and ZAR in September. TriOptima and LCH.Clearnet offered the first multilateral compression for cleared trades in 2009 and since then multiple cycles have been completed in CHF, EUR, GBP, JPY and USD. Cycles in the new currencies will also be regularly scheduled.
The total eliminated by LCH.Clearnet's SwapClear members in triReduce cycles at the end of August reached $330 trillion, $126 trillion in 2014 alone. TriOptima has eliminated more than $500 trillion in both cleared and uncleared credit, interest rate and commodity swaps since it began offering its triReduce service in 2003.
Daniel Maguire, Global Head of LCH.Clearnet's SwapClear said: "Compression is gaining momentum as the participation in this first triReduce and SwapClear ZAR cycle demonstrates. The industry recognises that it is the right move to help control operational and credit risk and minimise capital costs. Managing systemic risk is equally as important for South Africa as it is for any other jurisdiction, hence our dedication to providing ZAR-denominated IRS clearing and compression solutions to market participants in the region."
"We are committed to working with LCH.Clearnet SwapClear and its members to expand the opportunities for compression in the clearinghouse," said Peter Weibel, CEO of triReduce. "We understand the importance of reducing the size of portfolios both for the clearinghouse members and for the financial system overall."
Currently triReduce offers compression in: 10 cleared and 27 uncleared interest rate swap currencies; cross currency swaps; credit derivatives; and commodity swaps. Inflation swap and FX forward compression cycles will be introduced soon.
For further information, please contact:
Susan Hinko, Head of Industry Relations
Tel: + 1 646 744 0410
Tel: +44 207 397-2915
TriOptima is the award-winning provider of post trade risk management services and infrastructure for OTC derivatives. Focused on reducing costs, eliminating operational and credit risk, improving counterparty exposure management, and reducing systemic risk, TriOptima offers a range of services: triReduce to reduce swap inventory and counterparty risk; triResolve to reconcile OTC derivative portfolios, manage disputes, and validate repository data; triBalance to manage cleared and bilateral counterparty risk and triCalculate to measure and analyze counterparty risk.
TriOptima, an ICAP Group company, maintains offices in London, New York, Singapore, Stockholm, and Tokyo.
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LCH is a group of leading multi-asset clearing houses that provides proven risk management capabilities across a range of asset classes. As demand for robust clearing services continues to grow, LCH is committed to maintaining the highest standards of risk management across all our services.
As the markets’ partner, LCH operates an open access model, offering a choice of execution venues, delivering unprecedented choice and efficiencies to the marketplace.
LCH operates clearing houses around the world, with clearing houses incorporated in the UK, France and the United States with additional offices in the Asia Pacific region. It offers clearing services across asset classes including OTC and listed rates; CDS and FX; fixed income; commodities; cash equities and equity derivatives.
LCH is majority owned by London Stock Exchange Group (LSE.L), an international markets infrastructure business that sits at the heart of the world's financial community.