TriOptima announces today that 18 participants eliminated $1.6 trillion Canadian Dollar (CAD) in LCH.Clearnet’s SwapClear. This represents 20% of the interdealer CAD notional outstanding in CAD cleared interest rate swaps in the clearinghouse (CCP).
“Our last two cycles have eliminated $3.3 trillion CAD in outstanding CAD interest rate swaps in SwapClear , contributing to a further reduction in systemic risk for the market and regulatory capital for individual institutions,” said Michael Modlock, Head of triReduce North America. “We continue to see greater compression possibilities as unlinking trades in the CCP provides a larger pool of eligible swaps for compression.”
Currently TriOptima and LCH.Clearnet’s SwapClear offer compression cycles for 13 currencies: Australian Dollar (AUD), Canadian Dollar (CAD), Swiss Franc (CHF), Euro (EUR), British Sterling (GBP), Hong Kong Dollar (HKD) Hungarian Forint (HUF), Japanese Yen (JPY), New Zealand Dollar (NZD), Polish Zloty (PLN), Swedish Kroner (SEK), US Dollar (USD), South African Rand (ZAR).
As clearing-houses unlink trades from the original counterparty to create “unlinked trades,” dependency on the participation of other clearing members is reduced, resulting in a larger pool of trades eligible for compression.