TriOptima continues to support CDS back offices by offering termination cycles in European and American CDS indices and European and American index tranches during the month of April.
These cycles have attracted significant participation by TriOptima subscribers, especially the European cycles scheduled for April 13 in indices and April 23 in tranches. The American index cycle is scheduled for April 12th, and the American tranche cycle will be held on April 27.
By eliminating tranche trades, dealers also eliminate potential costly operational, legal and administrative procedures that would ensue if any of the underlying entities in an index experienced a credit event. CDS index tranches, a specialized type of credit derivative, were developed to enable the trading of credit risk correlations across the portfolio of underlying entities in an index, and are structured with a series of credit event triggers that require careful monitoring. The numbers of trades and the number of participants has more than doubled since the first tranche cycle was offered by TriOptima in June, 2006.