TriOptima Compresses SGD 1.7 Trillion Notional at LCH In H1 2021

Rhea-AI Summary

TriOptima announced a significant achievement in the OTC derivatives market, reducing total Singapore dollars notional outstanding at LCH by 50%, compressing SGD 1.7 trillion in interest rate derivatives during H1 2021. This marks a record of over SGD 3.5 trillion terminated across 39 participants in the last year. The company's compression service continues to play a crucial role in minimizing legacy benchmark exposure as the industry shifts to new reference indices. This innovative approach reinforces TriOptima's importance in the evolving financial landscape.

Positive

• Compression of SGD 1.7 trillion in interest rate derivatives in H1 2021.
• Record achievement of SGD 3.5 trillion terminated in the last 12 months.
• Increased adoption of TriOptima's benchmark conversion service.

Negative

• None.

LONDON and SINGAPORE, July 20, 2021 /PRNewswire/ -- TriOptima, a leading infrastructure service that lowers costs and mitigates risk in OTC derivatives markets, today announced that it reduced the total Singapore dollars notional outstanding at LCH by 50% by compressing SGD 1.7T in interest rate derivatives H1 2021.

This contributes to a record 12 months with TriOptima successfully terminating over SGD 3.5 trillion worth of notional across 39 participants, including direct clearing members, clients, and clearing brokers. The latest Singapore dollar compression run on Jun 23, 2021 also saw firms adopt TriOptima's benchmark conversion service for the first time. The strong results and wide participation underscore the central role of TriOptima' s compression service in helping the industry reduce legacy benchmark exposures, as part of the global shift to the new reference indices.

"TriOptima continues to help market participants decrease their exposure to legacy benchmarks," said Philip Junod, Senior Director, triReduce and triBalance business management. "The results are a testament to our continued innovation, coupled with our global network to provide solutions to the challenges faced by the OTC derivatives industry."

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. 

 

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SOURCE CME Group

FAQ

What is TriOptima's recent achievement in the derivatives market?

TriOptima reduced total Singapore dollars notional outstanding at LCH by 50%, compressing SGD 1.7 trillion in interest rate derivatives during H1 2021.

How much notional did TriOptima terminate in the last year?

TriOptima successfully terminated over SGD 3.5 trillion worth of notional across 39 participants in the last 12 months.

What new service did TriOptima introduce?

TriOptima introduced a benchmark conversion service that was adopted by firms for the first time during the latest compression run.

Why is TriOptima's service important for the OTC derivatives industry?

TriOptima's compression service helps market participants reduce exposure to legacy benchmarks, facilitating the industry's shift to new reference indices.