Post trade infrastructure provider TriOptima, part of ICAP plc (LON:IAP), today announces that Eurex Clearing members successfully completed the first triReduce compression cycle for cleared euro (EUR) interest rate swaps (IRS).
This marks the first collaboration between Eurex Clearing, part of Deutsche Boerse AG (ETR:DB1), and TriOptima.
The aim of portfolio compression is to cut the size of an existing OTC IRS portfolio with respect to the number of trades and notional through early termination of existing trades. triReduce offers compression across a broad spectrum of products, including cleared and uncleared interest rate products in 27 currencies, credit default swaps, commodity swaps, inflation swaps, cross currency swaps, and FX forwards.
Danny Chart, Eurex Group, Head of Sales Initiatives, says:
“With the EurexOTC Clear for IRS volumes continuing to grow at an impressive rate, the launch of our compression services with triReduce are an important part of our overall value proposition. As a cross asset class CCP we are able to deliver the highest levels of efficiency. We will continue to develop netting and compression services so that our members and their clients will be able to realise additional efficiencies when clearing more of their derivatives through Eurex Clearing, mitigating the impact of capital and balance sheet pressures.”
Peter Weibel, CEO of triReduce, says,
“We are pleased that Eurex Clearing members now have the ability to compress their cleared trades through triReduce and achieve the capital and balance sheet benefits of reducing their outstanding notional volumes. We look forward to regular compression cycles for Eurex Clearing members now that the triReduce compression infrastructure is in place.”
For the full announcement on the achievement, click here.