Trade Compression

TriOptima announced that market participants, using its triReduce compression service for both interest rate and credit default swaps, terminated a record-breaking $62 trillion in OTC derivative notional principal outstanding in 2011.  The $62 trillion included $56.4 trillion in interest rate swap notional principal of which $48.3 trillion were cleared swaps in LCH SwapClear, and $5.6 trillion in credit default swap notional principal. This represented a 14% increase over 2010 levels overall, and a 23% increase in interest rate swap terminations.

TriOptima and LCH.Clearnet Limited (LCH.Clearnet) have announced that the first JPY-denominated interest rate swaps (IRS) have been torn up by SwapClear members. The triReduce termination cycle terminated JPY 83.3 trillion notional principal ($1.1 trillion) from LCH.Clearnet’s SwapClear service. 

Represents the largest USD interest rate swap tear-up to date for SwapClear

LCH.Clearnet Limited (LCH.Clearnet) and TriOptima announce that SwapClear members have torn up $7.1 trillion notional principal in SwapClear-cleared USD-denominated interest rate swaps (IRS) in a triReduce termination cycle, thereby eliminating them from LCH.Clearnet’s SwapClear service.

triReduce service eliminates interest rate swaps with a notional value of $22.1 trillion and CDS with a notional value of $3.2 trillion

TriOptima announced that in the first six months of 2011 its triReduce early termination service had eliminated interest rate swaps with a notional value of $22.1 trillion, including cleared swaps in LCH.Clearnet Swapclear. Credit default swaps with a notional value of $3.2 trillion were also compressed during this time period. 

TriOptima announced that 15 regional and international institutions eliminated Mexican peso interest rate swaps with a notional value of $337 billion (4 trillion MXN) using the triReduce portfolio compression service.  
 

TriOptima has released updated statistics on total notional values terminated through compressions in the interest rate swap (IRS) and credit default swap (CDS) markets. Notional values below are year-to-date through October 31, 2010.

2010 YTD Notional terminated through IRS compressions stands at $44.1 trillion.
2010 YTD Notional terminated through CDS compressions stands at $7.2 trillion.

LCH.Clearnet and TriOptima announced that SwapClear members eliminated 31,280 EURO-denominated interest rate swap trades with a notional value of €3 trillion ($4.55 trillion USD) in the largest triReduce termination cycle conducted to date within SwapClear. Twelve of SwapClear’s twenty-five clearing members participated in the cycle.

TriOptima announced that its triReduce multilateral termination service significantly reduced outstanding notionals between dealers in credit default swap (CDS) and interest rate swap (IRS) outstandings during 2009.


TriOptima announced today that it has completed two additional portfolio compression cycles for Thomson single name and Thomson-related index tranche transactions after the implementation of the ISDA ‘Small Bang Protocol’. 



In the Thomson single name cycle, 31 banks terminated 8105 trades with a notional value of $19.6 billion. The Thomson single names terminated represented over ¾ of the current population of single name trades held by the cycle participants in DTCC’s Trade Information Warehouse.