TriOptima, already offering regular termination cycles in 11 currencies globally, plans to expand its 2007 termination cycles into several emerging market currencies including the Czech koruny (CZK ), the Hungarian forint (HUF), the Korean won (KWN), the Mexican peso (MXN), and the Polish zlotych (PLN).
Transaction volumes are growing in the emerging markets as a result of recently-enacted netting legislation and the subsequent development of strong trading activity. Tearing up the unnecessary inventories of trades in these currencies will result in even greater operational gains and the release of credit capital under the BIS rules. In the Mexican peso market, for example, the 28-day payment cycle results in operational cost and risk exposure which could be eliminated through a termination cycle.
Currently TriOptima’s termination cycles include AUD, CAD, CHF, EUR, GBP, HKD, JPY, NZD, SEK, USD and ZAR.