TriOptima SwapClear Completes First Client-cleared Trades for CAD Swaps
- Client-cleared trades are cleared through a FCM on behalf of market participants who are not direct members of a CCP.
TriOptima, which provides OTC derivatives post-trade and risk reduction services, today announced that 18 entities participated in the recent SwapClear compression cycle for Canadian Dollar (CAD) interest rate swaps, terminating $1.38 trillion CAD (US$ 1.05) in notional principal for the first client-cleared trades.
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Launched at a time when international regulators have encouraged compression services for non-centrally cleared OTC derivatives, TriOptima service combines CLS’s infrastructure and market connectivity with its triReduce compression product to enable counterparties to reduce the gross notionals of their outstanding portfolios without fundamentally changing their market positions.
Currently TriOptima delivers triReduce compression for cleared trades in collaboration with leading clearinghouses (CCPs) around the globe. TriOptima also offers triReduce to CLS members for FX forwards.
According to TriOptima’s announcement, client-cleared trades are cleared through a Clearing Broker or Futures Commission Merchant (FCM) on behalf of market participants who are not direct members of a CCP. Including client-cleared trades in all future SwapClear triReduce compression cycles “expands the participant base and Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term pool, increasing compression efficiency.”
Many major firms including hedge funds, asset managers and other financial firms, such as Citadel, have also embraced new technologies to pare down their remaining counterparty risks by identifying overlapping trades and offsetting them.
John Naud, COO of Global Fixed Income for Citadel commented: “We are pleased to participate in the inaugural triReduce cycle and to see TriOptima’s portfolio compression solutions become available to more market participants. We have long supported buy side access to these solutions and look forward to the benefits that this will bring to the market.”
Cameron Goh, Global Head of Rates and FX Derivatives at LCH added: ”This enhancement means that our clients now have even more opportunities to compress trades by accessing SwapClear’s large pool of OTC liquidity. We continue to see strong demand for compression services, and our Buy-Side Buy-Side The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim Read this Term clients are particularly keen on using these tools to maximize their operational efficiency.”
“Including client-cleared trades increases the participant base in triReduce cycles and generates larger pools of eligible trades for compression, improving cycle efficiency and results for all participants. This also expands the benefits of risk, capital and operational cost reductions to a substantial new segment of market participants,” concluded Peter Weibel, CEO of triReduce.
TriOptima, which provides OTC derivatives post-trade and risk reduction services, today announced that 18 entities participated in the recent SwapClear compression cycle for Canadian Dollar (CAD) interest rate swaps, terminating $1.38 trillion CAD (US$ 1.05) in notional principal for the first client-cleared trades.
The FM London Summit is almost here. Register today!
Launched at a time when international regulators have encouraged compression services for non-centrally cleared OTC derivatives, TriOptima service combines CLS’s infrastructure and market connectivity with its triReduce compression product to enable counterparties to reduce the gross notionals of their outstanding portfolios without fundamentally changing their market positions.
Currently TriOptima delivers triReduce compression for cleared trades in collaboration with leading clearinghouses (CCPs) around the globe. TriOptima also offers triReduce to CLS members for FX forwards.
According to TriOptima’s announcement, client-cleared trades are cleared through a Clearing Broker or Futures Commission Merchant (FCM) on behalf of market participants who are not direct members of a CCP. Including client-cleared trades in all future SwapClear triReduce compression cycles “expands the participant base and Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term pool, increasing compression efficiency.”
Many major firms including hedge funds, asset managers and other financial firms, such as Citadel, have also embraced new technologies to pare down their remaining counterparty risks by identifying overlapping trades and offsetting them.
John Naud, COO of Global Fixed Income for Citadel commented: “We are pleased to participate in the inaugural triReduce cycle and to see TriOptima’s portfolio compression solutions become available to more market participants. We have long supported buy side access to these solutions and look forward to the benefits that this will bring to the market.”
Cameron Goh, Global Head of Rates and FX Derivatives at LCH added: ”This enhancement means that our clients now have even more opportunities to compress trades by accessing SwapClear’s large pool of OTC liquidity. We continue to see strong demand for compression services, and our Buy-Side Buy-Side The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim Read this Term clients are particularly keen on using these tools to maximize their operational efficiency.”
“Including client-cleared trades increases the participant base in triReduce cycles and generates larger pools of eligible trades for compression, improving cycle efficiency and results for all participants. This also expands the benefits of risk, capital and operational cost reductions to a substantial new segment of market participants,” concluded Peter Weibel, CEO of triReduce.