TriOptima, the award-winning provider of post trade processing services, today announced that more than 15 institutions were reconciling over 4 million OTC derivative transactions through triResolve, its portfolio reconciliation service. Launched earlier this year, triResolve has quickly become the industry standard for proactive portfolio reconciliations, with smaller dealers and hedge funds joining the largest OTC derivative dealers subscribing to TriOptima’s ground-breaking service.
“triResolve offers us the advantage of easy, automated reconciliations against some of our largest counterparties. We are able to identify and resolve discrepancies in both positions and valuations,” commented Chris Harris, Managing Director of Operations at KBC AIM, a global multi-strategy hedge fund manager with over $1 billion in assets under management.
While all triResolve subscribers utilize the automated, web-based service to reconcile with each other on a weekly or bi-weekly basis, some also regularly submit portfolios of 100 or more non-subscribing counterparties as an alternative to manual spread sheet analysis. Portfolios regularly submitted to triResolve typically achieve very high automatch levels, allowing institutions to focus exclusively on exceptions in their collateral management process.
Collateralization of OTC derivative portfolios is a major risk mitigation technique for substantially reducing credit risk and managing counterparty credit exposure. Accurate portfolio reconciliation is the foundation for collateral management.
“In periods of market turbulence like we have experienced recently, triResolve provides precise information about the status of counterparty portfolios for easy resolution of collateral management issues,” commented Henrik Nilsson, Head of Business Development. “Information from the service allows counterparties to zero in on specific areas of dispute, whether it be trade population or valuation related, quickly and efficiently.”
triResolve transforms portfolio reconciliation into a proactive process. Its unique network community approach facilitates close collaboration between institutions and internally within an institution. Regular, ongoing triResolve reconciliations reduce collateral disputes, operational costs, and errors in credit exposure calculation. triResolve can be used to reconcile against all OTC derivatives users including dealers, hedge funds and fund managers.
triResolve is a web-based service where participants submit their entire bi-lateral portfolios comprised of all OTC derivative transactions covered under their collateral agreements. Portfolios are compared and the results of the match are immediately available on the triResolve website showing all trade details and valuations.
Counterparties research and resolve their differences online through the innovative triResolve GUI. triResolve maintains previous data submissions and matches, so that only incremental discrepancies need to be addressed. Extensive management reporting capabilities provide senior management with the tools they need to monitor progress and identify hotspots.