|WATCH: Per Sjöberg of TriOptima Discusses the Changing Regulatory Environment & Portfolio Reconciliation & Compression on MarketsWiki.tv (June 2012)|
|Key People||Per Sjöberg, TriOptima Group CEO|
|Products||portfolio reconciliation, portfolio compression|
The firm, which is owned by ICAP, offers two main services - triResolve, that provides portfolio reconciliation, margin call management and dispute resolution; and triReduce, a portfolio compression service used by derivatives dealers that basically matches offsetting bi-lateral transactions in single name and index credit default swaps, interest rate swaps in 25 currencies and energy derivatives.
The company is based in Stockholm and has offices in London, New York, Singapore and Tokyo.
TriOptima is well known in the OTC markets for its triReduce termination cycles or trade compression service, which generally speaking is a way to eliminate bi-lateral interest rate swaps trades and other OTC trades. Using the service, trades are "torn up" at their mid mark-to-market valuations. In doing so, firms can reduce their costs, free up credit and reduce capital requirements.
The firm started using triReduce with LCH.Clearnet in 2008 and had terminated a notional volume of $110 trillion in interest rate swaps demoninated in euros, US dollars, yen and British pounds by February 2012. In that time, more than 950,000 transactions had been terminated within LCH's SwapClear facility.
The firm is also known for triResolve, which is used by dealers, regional banks and buy-side firms for portfolio reconciliation. The company states that the service has handled 6 million trades, representing over 75 percent of all non-cleared OTC derivative transactions worldwide.
Products and Services
TriReduce allows firms to "tear up" existing trades at their mark-to-market valuations. The idea behind triReduce is that the service helps avoid a difficult negotiation process for bilateral termination. Multilateral terminations leverage off the expanded number of participants and results in increased numbers of terminated trades. Eliminating trades eliminates costs, credit and operational risk and reduces capital requirements. With the one-book approach, swaps executed across multiple desks are combined into a central book for clearing and compression purposes. Including all trading desks from an organization increases the number of offsetting trades and has a dramatically positive effect on compression results.
TriBalance, launched in April 2012, is a post trade service which is designed to lower risk concentration. The product focuses on the credit exposure of cleared trades that no longer can be netted against bilateral trades across different asset classes. TriBalance is designed to reduce risk of contagion in cleared and bilateral counterparties by rebalancing the credit risk exposure from market moves.
Per Sjöberg MarketsWiki Interview
Per Sjöberg of TriOptima Discusses the Changing Regulatory Environment & Portfolio Reconciliation & Compression
The ongoing regulatory overhaul is forcing more firms to find ways to reduce risk and improve capital efficiencies. TriOptima has been working with firms on both issues using its triResolve service for portfolio reconciliation and triReduce services, for portfolio compression. The firm’s services have helped terminate over $110 trillion total notional volume in interest rate swaps since 2008. Per Sjöberg spoke recently with JLN’s Jim Kharouf about the changing landscape. Published June 12, 2012.Watch at MarketsWiki.tv
- Per Sjöberg, TriOptima Group CEO
- Mireille Dyrberg, Chief Operating Officer
- Peter Weibel, triReduce CEO
- Raf Pritchard, triResolve, CEO
- Yutaka Imanishi, TriOptima Asia Pacific
- Susan Hinko, Global Head of Industry Relations
- ↑ TriOptima and LCH.Clearnet terminate SwapClear USD interest rate swaps with notional principal value of $7.1 trillion. TriOptima release.
- ↑ TriOptima and LCH.Clearnet Compression of Cleared Interest Rate Swaps Exceeds $100 Trillion in Notional; $20.4 Trillion Compressed in 2012 Alone. TriOptima release.
- ↑ TriOptima and LCH.Clearnet Compression of Cleared Interest Rate Swaps Exceeds $100 Trillion in Notional; $20.4 Trillion Compressed in 2012 Alone. TriOptima Release.
- ↑ TriOptima introduces its new triBalance service for reducing systemic risk by rebalancing counterparty credit exposure for cleared and uncleared OTC derivatives. TriOptima Release.
- ↑ Per Sjöberg of TriOptima Discusses the Changing Regulatory Environment & Portfolio Reconciliation & Compression. MarketsWiki.tv.