Brouwer said the sheer complexity of terminating swaps contracts between many large counterparties meant a manual system – as used during a small pilot run late last year (See: TriOptima sets sights on $25 trillion swap elimination
) – was impossible. “In the pilot run, the maximum termination was a few hundred swaps and we could do that manually. With thousands of swaps it is not possible,” said Brouwer.
As a result, banks will need to send full details of swaps they are keen to terminate in