TriOptima Completes First Inflation Swap Compression Cycle For EU Banks
- The elimination of these swaps is important for firms as it mitigates capital costs, whilst bolstering the leverage ratio of a respective company.
TriOptima, a post trade infrastructure provider, has announced the participation of eighteen banks in its inaugural triReduce inflation swap compression cycle, which effectively eliminated $98.5 billion in inflation index swaps for the EU, according to a TriOptima statement.
Inflation swaps are key goals of participating firms, encompassing long-term compounding coupons that help generate large cash Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term – the elimination of these swaps is important for firms as it helps mitigate capital costs, whilst bolstering the Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term ratio of a company.
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TriOptima has already unveiled plans to execute similar inflation swap compression cycles with the GBP and USD, with additional consideration to run euro cycles for select European indices. The elimination of long-dated inflation swap compression is also enticing for TriOptima’s clients as it helps affiliates better meet their obligations under the European Solvency II regulatory regime.
According to Peter Weibel, Chief Executive Officer (CEO) of triReduce, in a recent statement on the cycles: “triReduce is always looking to enhance the services we offer to our customers, who continue to look for ways to reduce their balance sheet outstanding notional assets, and their capital costs.”
“The addition of inflation swap compression demonstrates TriOptima’s ongoing innovation and creativity in tackling these more difficult transaction types, which include cross currency swaps and FX forwards, and in delivering an efficient and effective solution,” he added.
Back in October, TriOptima made headlines when it jointly launched the triReduce Forward FX Compression Service with CLS Group. The triReduce CLS Forward FX Compression Service was designed to help consolidate CLS’s robust foreign exchange (FX) infrastructure as well as its market connectivity capabilities with TriOptima’s triReduce compression product.
TriOptima, a post trade infrastructure provider, has announced the participation of eighteen banks in its inaugural triReduce inflation swap compression cycle, which effectively eliminated $98.5 billion in inflation index swaps for the EU, according to a TriOptima statement.
Inflation swaps are key goals of participating firms, encompassing long-term compounding coupons that help generate large cash Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term – the elimination of these swaps is important for firms as it helps mitigate capital costs, whilst bolstering the Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term ratio of a company.
Can you pass the Finance Magnates exam? Give it a go, there are prizes...
TriOptima has already unveiled plans to execute similar inflation swap compression cycles with the GBP and USD, with additional consideration to run euro cycles for select European indices. The elimination of long-dated inflation swap compression is also enticing for TriOptima’s clients as it helps affiliates better meet their obligations under the European Solvency II regulatory regime.
According to Peter Weibel, Chief Executive Officer (CEO) of triReduce, in a recent statement on the cycles: “triReduce is always looking to enhance the services we offer to our customers, who continue to look for ways to reduce their balance sheet outstanding notional assets, and their capital costs.”
“The addition of inflation swap compression demonstrates TriOptima’s ongoing innovation and creativity in tackling these more difficult transaction types, which include cross currency swaps and FX forwards, and in delivering an efficient and effective solution,” he added.
Back in October, TriOptima made headlines when it jointly launched the triReduce Forward FX Compression Service with CLS Group. The triReduce CLS Forward FX Compression Service was designed to help consolidate CLS’s robust foreign exchange (FX) infrastructure as well as its market connectivity capabilities with TriOptima’s triReduce compression product.