London based NEX Group PLC (LON:NXG), formerly ICAP plc, has announced that participants in its NEX Optimisation unit, which helps clients reduce complexity and optimise resources across the transaction lifecycle, have eliminated over $1 quadrillion ($1,000 trillion) in OTC derivative notional principal using its triReduce compression service, since first introduced in 2003.
triReduce is a multilateral risk-constrained compression service that offers compression for cleared and non-cleared interest rate swaps in 28 currencies, cross currency swaps, inflation swaps, credit default swaps, FX forward, and commodity swaps. Eliminating unnecessary swap inventory contributes to enhanced credit risk and capital management, reduces operational costs and risk, improves leverage ratios, and reduces systemic risk.
Peter Weibel, CEO of triReduce, said:
Hitting the $1 quadrillion mark is a significant achievement for the market. Our clients, both dealers and the buy side, are focused on eliminating as much notional principal as possible to meet regulatory goals and to manage their own balance sheets. We are proud to have worked together with our clients and other infrastructure providers where possible to achieve this goal.
triReduce is continually expanding its catalogue to include new products and market segments, including dealer and customer cleared swaps in central clearing counterparties around the globe.