TriOptima conducted the first-ever triReduce compression cycle in Korean won (KRW) interest rate swaps. Seven banks terminated 6462 trades with a notional principal of KRW 136 trillion ($100 billion USD) double counted. They eliminated KRW 4.5 trillion ($3.3 billion) in mark-to-market exposure.
âGiven the current challenges facing financial institutions globally, eliminating these transactions offers major benefits by reducing counterparty credit exposure, freeing up capital, increasing liquidity and reducing operational costs and risks,â commented Peter Weibel, CEO of TriOptima Asia. âWe are pleased that we were able to terminate 89% of all the matched trades between participating banks. We look forward to even greater success in the future as we continue to expand our Asian presence.â
TriOptima offered IRS compression cycles in 19 currencies in 2008 to meet demand for its multilateral termination service, triReduce. CZK, HUF, INR and KRW were introduced in 2008. Terminations in these currencies release significant amounts of capital which is helpful to institutions facing liquidity constraints.