TriOptima announces completion of first unlinked JPY interest rate swaps compression cycle in JSCC

TriOptima, the subsidiary of ICAP plc (LON:IAP) which provides post trade risk management services and infrastructure for OTC derivatives, today announces that members of Japan Securities Clearing Corporation (JSCC) terminated JPY 72.5 trillion ($588.9 billion) in the first unlinked compression cycle for JPY interest rate swaps (IRS) in JSCC.

This marks an increase of 44.4% over the notional terminated in September’s compression cycle. Since January 2015, triReduce compression cycles have cut JSCC ¥ IRS notional outstanding by JPY 316.5 trillion.

To offer one more comparison, let’s mention that in December 2014, TriOptima announced that 14 major Japanese and international financial institutions eliminated JPY 9.86 trillion in notional principal in JSCC’s first triReduce multilateral risk-constrained compression cycle.

Takehiro Hosomura, Director of OTC Derivatives Clearing Service at JSCC, said,

“As we anticipated, the unlinking of trades in JSCC resulted in an increase in notional terminated. The unlinking also resulted in the greatest number of trades terminated since we started. Unlinking combined with the growing participation of our clearinghouse members will continue to generate further increases as reflected in this year’s results.”

Yutaka Imanishi, CEO of TriOptima Asia Pacific, said,

“We continue to work with JSCC and with all participants to facilitate compression in the clearinghouse, The JSCC members are eager to continue compression, increasing both the number of cycle participants and the number of trades submitted.”

To view the official announcement from ICAP, click here.

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