TriOptima conducted the first-ever triReduce termination cycle in Indian rupee (INR) swaps based on MIBOR (Mumbai Interbank Offered Rate). Seven banks terminated 10,600 trades with a notional principal of INR 4.6 trillion ($107 billion) doublecounted. They eliminated INR 153.4 billion ($3.6 billion) in mark-to-market exposure.
Peter Weibel, ceo of TriOptima Asia, commented "We are pleased that we were able to terminate 94% of all the matched trades between participating banks. This represents a major contribution to the reduction of operational risk and costs, as well as counterparty credit risk exposure. We look forward to offering another cycle that will include MIFOR (Mumbai Interbank Forward Offered Rate) swaps soon; and expect a robust result again."
TriOptima has been expanding the range of currencies for swap tear-up cycles to meet demand for its multilateral termination service, triReduce; and will offer tear ups in 19 currencies in 2008. This year CZK, HUF, INR and KRW were added. Terminations in these currencies release significant amounts of capital which is helpful to institutions facing liquidity constraints.
*all figures are doublecounted