- 28 Jul 2021
- By TriOptima
- Topics: triReduce
We are delighted to have won Service Provider of the Year for the second consecutive year. Thanks to all of our customers for the support.
This year, our compression cycles have reduced the total SGD notional outstanding at LCH by 50%. Over the last 12 months, we have successfully terminated over SGD 3.5 trillion gross notional for 39 participants, including direct clearing members, clients, and clearing brokers.
Over the last decade, global regulators have introduced several measures in the OTC derivatives market designed to increase financial market resiliency and mitigate counterparty credit risk. SA-CCR is the most recent measure to come to market. Our panel of experts discuss challenges and solutions for optimizing both UMR and capital under the SA-CCR regime. and ways to reduce the size of capital buffers and initial margin funding costs.
Reduce counterparty risk exposures in combination with other key priorities, simplify OTC derivative portfolios, and reduce the cost of maintaining them with these solutions.
The introduction of the SA-CCR regulations changes the metrics used for deriving capital costs, switching the focus to counterparty credit risk. Will this fundamental change in methodology impact trading behavior and post trade optimization?
triBalance has been running monthly optimization cycles for nine months proactively managing SA-CCR and RWA exposures, while simultaneously optimizing initial margin.
Wednesday, September 29
10:30 a.m. ET | 3:30 p.m. BST
In 2021, triBalance has achieved an average 7% MoM growth (over 30% YTD) in initial margin reductions, providing our customers with increased capital efficiencies and reduced funding costs.
Source: TriOptima
Our latest Korean won compression cycle enabled a record 17 participating entities to compress 19.4% of total outstanding KRW notional at LCH, driving operational efficiencies and reduced risk and capital costs for our customers.
We're seeing increasing interest in each of our compression cycles, especially in currencies with interest rate benchmarks subject to index cessation.
Our benchmark conversion service helps market participants proactively and iteratively reduce exposure to legacy indices in their OTC swap portfolios.
Live
EUR €STR | GBP SONIA | JPY TONA | USD SOFR | CHF SARON | SGD SORA
Adoption of alternative RFRs and reductions in legacy benchmark exposure are expected to continue in 2021. Use our roadmap to take control of your portfolio and compress your swaps using triReduce's benchmark conversion service.
triReduce experts sat down with Risk.net to answer questions about the proactive benchmark transition options available for your OTC swap portfolio.
2021 has brought greater clarity over index cessation, the derivatives fallbacks, as well as the conversion mechanisms being proposed by CCPs for the impacted trades they clear. Focus can now shift to mitigating these impacts on your OTC interest rate derivatives portfolio.
Webinar with Risk.net: Managing Benchmark Conversion for OTC Swaps Thursday, August 26
11:30 a.m. HKT
Our panel of industry experts will examine how market participants are transitioning their OTC swap portfolios in the Asia-Pacific region.
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