Stockholm-based technology company TriOptima has eliminated $13.9 trillion in notional outstanding from the interest rate swaps market in the first half of 2009, more than the $13.6 trillion total eliminated in 2008.
TriOptima conducted 19 early termination cycles in 15 interest rate currencies through its triReduce portfolio compression service. The largest contributors to the $13.9 billion total were from two US dollar cycles, eliminating $7.1 billion, and two euro cycles cutting notional by $5 trillion.
TriOptima linked the success to industry commitments to international regulators to reduce the notional outstanding size of the interest rate swap market, and a renewed focus on risk reduction by dealers.
Nevertheless, there is still plenty of scope to reduce the notional size of the interest rate swap market. According to the Bank for International Settlements, interest rate swaps outstanding totalled $418.7 trillion at the end of 2008.
TriOptima said it will run another 21 cycles in the second half of this year.
The company announced last week it had eliminated $9 trillion in notional outstanding from the credit default swap market in the first half of the year.
More on Infrastructure
US regulatory concerns about liquidity of government securities collateral could be resolved by access to the Fed’s discount window, CCP officials say
High-frequency traders have been viewed with suspicion for some time. Now critics claim exchanges are conspiring with the traders to develop tools that benefit them and disadvantage ordinary investo...
The benefits of local trade repositories outweigh the possible disadvantages of multiple reporting requirements, says executive director of HKMA’s financial infrastructure unit
Sign up for Risk.net email alerts
Sponsored video: MarketAxess
Sponsored video: Tradeweb
Multifonds talks to Custody Risk on being nominated for the Post-Trade Technology Vendor of the Year at the Custody Risk Awards 2014
Sponsored webinar: IBM Risk Analytics
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.