CME Group Inc (NASDAQ:CME), the world’s leading and most diverse derivatives marketplace, announced today the completion of the first multilateral compression cycle in collaboration with TriOptima’s triReduce compression service.
Now officially clearing the first trade, this news was first announced back in March that that CME Group IRS clearing members will be able to compress their US dollar dealer-cleared trades through triReduce in their proprietary accounts.
Nine CME Group IRS clearing members participated in the cycle, which compressed $2.2 trillion in gross notional, resulting in a reduction of 44,933 line items and an additional 6,900 line items partially terminated. Multilateral compression further enhances CME Group’s compression offering, including Compression via Coupon Blending, which has already reduced total notional by more than $11 trillionand total line items by more than 180,000.
Sunil Cutinho, President of CME Clearing stated: “CME Group is proud to deliver the most capital efficient solution to market participants, and our multilateral compression offering further solidifies our leadership position along with Compression via Coupon Blending and Portfolio Margining of Swaps and Futures.”
“Our collaboration with CME Group enables its clearing members to access an important tool for reducing risk and complying with the new capital rules,” said Peter Weibel, CEO of TriOptima. “These significant results are also another example of the efficiency of multilateral compression in an unlinked trade environment.”
The elimination of these trades streamlines system processing and reduces operational and administrative burdens in the event of a default.
To view the official release from CME Group, click here.