The largest elimination of interest rate notionals to date was completed in February, TriOptima, the supplier of post trade services for the OTC markets announced today. Derivative dealers reduced notional outstandings in USD interest rate swaps by $3.27 trillion using triReduce, TriOptima’s compression service. With the largest elimination in interest rate notionals so far, the 20 participating banks demonstrated that they are meeting their commitments to the regulators to accelerate compression activity for interest rate swaps in 2009.
"Last year dealers eliminated $13.6 trillion in notional across 19 currencies in interest rate swaps. This one USD interest rate cycle alone represents 24% of the total for 2008," said Brian Meese, TriOptima ceo. "In 2009, we will be offering even more compression cycles in IRS swaps to assist the dealers in achieving their goals. We are pleased to work together with the industry to improve the infrastructure and functioning of the OTC derivatives market."
According to the most recent report of BIS statistics, there was $44.6 trillion in USD interest rate swaps outstanding among dealers on June 30, 2008, including cleared transactions.
In 2008, TriOptima offered 30 interest rate swap compression cycles in 19 currencies around the globe. It also offered 50 compression cycles in various credit default swap transaction types in USD, EUR and JPY which reduced outstandings by $30.2 trillion.
