NEW YORK & LONDON--()--TriOptima announces that it successfully completed the first triReduce compression cycle for precious metals forwards and swaps, terminating $7.2 billion in notional principal outstandings. Working with six institutions to expand the range of compression activity, firms were able to reduce their gross positions in gold and silver unlocking regulatory capital and reducing collateral requirements.
“In the new regulatory environment it is important to manage capital and collateral resources efficiently”
“In the new regulatory environment it is important to manage capital and collateral resources efficiently,” said Mattias Palm, business manager for triReduce Commodities, “We were pleased to support the industry by applying our triReduce concept to precious metals trades. We look forward to future cycles, with additional participants, which will further increase the results“.
About triReduce Commodities
Compression services are offered through TriOptima’s triReduce service to OTC market participants with significant two-way flow. With triReduce, participants are able to tear up their existing trades at their own mid mark-to-market valuations avoiding the difficult negotiation process of bilateral termination. Multilateral terminations leverage off the expanded number of participants and result in increased numbers of terminated trades. Compression of OTC derivative trades promotes the efficient use of capital and collateral and contributes to overall financial stability.
TriOptima is the award-winning provider of risk management services and infrastructure for OTC derivatives. Focused on reducing costs, eliminating operational and credit risk, improving counterparty exposure management, and reducing systemic risk, TriOptima offers a range of services:.
- triResolve for bilateral, proactive OTC derivative portfolio reconciliation and dispute resolution
- triReduce for multilateral portfolio compression of cleared and uncleared OTC derivatives across different asset classes
- triBalance for proactive counterparty risk management that rebalances counterparty risk exposure between multiple CCPs and bilateral relationships
- triQuantify for innovative, centralized counterparty credit risk analytics and initial margin calculations that leverage the portfolio data in the triResolve reconciliation service.
TriOptima, an ICAP Group company, maintains offices in London, New York, Singapore, Stockholm, and Tokyo.