LONDON and NEW YORK, July 19, 2019 /PRNewswire/ -- TriOptima, a leading infrastructure service that lowers costs and mitigates risk in OTC derivatives markets, today announced that it has completed the first cleared inflation swap compression run at LCH SwapClear.
The compression run was completed on June 19 with Euro cleared inflation swaps being compressed through the triReduce service. TriOptima will go live with Sterling and US Dollar cleared inflation swaps compression in LCH SwapClear imminently.
In order to manage capital pressures, clients for the first time can 'co-mingle' cleared inflation swaps with vanilla swaps by leveraging the new triReduce low touch compression service. Launched in late 2018, low touch compression was quickly adopted by several of the largest banks as the next evolution in the compression process, delivering improved usability, user transparency and full automation together with API technology. The new service minimizes the number of clicks required to run a compression cycle and provides enhanced data validation checks to streamline the user experience. As a result, clients can complete compression runs on a daily basis and benefit from a reduction in capital, risk and operational costs.
"Increasing balance sheet pressures and growing resource constraints have seen banks increasingly turn to compression as an effective means of mitigating costs and risks. As a result, it's important that compression services evolve to meet the needs of clients today," said Michael Modlock, Global Head of Sales and Relationship Management, triReduce. "We're pleased to compress cleared inflation swaps for the first time, delivering this via our new low touch compression approach which not only minimizes the time spent by clients, but also provides superior data checks so they can compress in confidence."
"With clearing of inflation swaps up over 55% year-to-date compared to the same period in 2018 across 200 users, we're seeing strong demand continue for compression services," said Cameron Goh, Global Head of Product, Rates, LCH. "Compression is a crucial tool in driving efficiency for the cleared market. The ability to compress inflation swaps is of particular significance for members and clients who are looking to boost operational and capital efficiency."
TriOptima is a part of CME Group. For more information on TriOptima offerings, visit: https://www.trioptima.com/
As the world's leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. The company offers futures and options on futures trading through the CME Globex® platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing. With a range of pre- and post-trade products and services underpinning the entire lifecycle of a trade, CME Group also offers optimization and reconciliation services through TriOptima, and trade processing services through Traiana.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and, E-mini are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. BrokerTec, EBS, TriOptima, and Traiana are trademarks of BrokerTec Europe LTD, EBS Group LTD, TriOptima AB, and Traiana, Inc., respectively. Dow Jones, Dow Jones Industrial Average, S&P 500 and S&P are service and/or trademarks of Dow Jones Trademark Holdings LLC, Standard & Poor's Financial Services LLC and S&P/Dow Jones Indices LLC, as the case may be, and have been licensed for use by Chicago Mercantile Exchange Inc. All other trademarks are the property of their respective owners. TriOptima AB is regulated by the Swedish Financial Supervisory Authority for the reception and transmission of orders in relation to one or more financial instruments. TriOptima AB is registered with the US National Futures Association as an introducing broker.
SOURCE CME Group