TriOptima, part of ICAP plc (LON:IAP), announced today that 12 participants eliminated NZ$ 902.3 billion (US$590.2 billion) in the first NZD compression cycle in LCH.Clearnet’s SwapClear. According to SwapClear estimates, this accounts for 30% of the NZD notional and 35% of the NZD line items outstanding in the clearinghouse.
“The significant results in this cycle reflect the effect of unlinking trades in SwapClear and the compression efficiency achieved when trades are concentrated in one book rather than dispersed across many trading books in an organization,” said Peter Weibel, CEO of triReduce. “Recently we’ve seen similar results in SwapClear for South African Rand (ZAR) swaps where we eliminated 42% of the line items and 38% of the notional outstanding in SwapClear.”
“The introduction of NZD clearing is a great example of how SwapClear is delivering efficiencies across the regional currency mix,” said Marcus Robinson, Head of SwapClear, Australia. “The advantages to members and their clients of going well beyond the majors is clear in the marked uptick of clearing volumes.”
At present, TriOptima and LCH.Clearnet’s SwapClear offer compression cycles for 13 currencies: Australian Dollar (AUD), Canadian Dollar (CAD), Swiss Franc (CHF), Euro (EUR), British Sterling (GBP), Hong Kong Dollar (HKD), Hungarian Forint (HUF), Japanese Yen (JPY), New Zealand dollar (NZD), Polish Zloty (PLN), Swedish Kroner (SEK), US Dollar (USD), South African Rand (ZAR).
To view the official announcement, click here.