TriOptima Sees Inaugural $664B Compression Cycle For MXN Swaps

TriOptima has erased 35% of the cleared MXN notional principal outstanding in CME in its first compression cycle.

TriOptima, a post trade infrastructure provider, has announced the compression cycle for cleared Mexican Peso swaps at CME Group, having eliminated roughly $664 billion (12.5 trillion MXN) notional outstanding, per a TriOptima statement.

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The announcement is important namely as it constitutes TriOptima’s first completion of a triReduce multilateral compression cycle for cleared Mexican Peso interest rate swaps IRS). The feat was accomplished by a total of eleven CME Group IRS clearing members, which essentially encompassed upwards of 35% of the cleared MXN notional principal outstanding in CME via the cycle. The compression also marks the first such clearing round of any Latin American (LATAM) currency.

Ongoing Cycles 

Since 2007, TriOptima has offered compressions for uncleared MXN trades, having already undergone a total of 20 MXN cycles to date, including the completion of the aforementioned cycle from CME Group IRS clearing members. TriOptima has also made inroads with uncleared Brazilian Real (BRL) and Colombian Peso (CLP) trades.

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According to Sunil Cutinho, President of CME Clearing, in a recent statement on the compression cycle, “Mexican Peso swap clearing at CME Group is an exciting innovation we’ve delivered for our customers, and we’re pleased to work with TriOptima to deliver even greater capital efficiencies to the marketplace.”

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Peter Weibel, CEO, triReduce

“With bilateral swaps facing higher capital costs and the implementation of uncleared margin rules starting September 1, the combination of voluntary clearing and multilateral compression provides significant value to our clients,” he added.

“TriOptima continues to work closely with the CME Clearing to expand the range of compression services offered to their IRS clearing members and others. Eliminating trades is an important tool for improving capital efficiencies and operational processes,” explained Peter Weibel, Chief Executive Officer (CEO) of triReduce. “

Earlier this year, TriOptima also made headlines with the participation of eighteen banks in its first triReduce inflation swap compression cycle, which effectively erased $98.5 billion in inflation index swaps for the EU.

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