TriOptima, provider of OTC derivative post trade services, announces that it has completed the largest triReduce energy portfolio compression cycle to date, eliminating 5000 transactions with a notional outstanding value of €8.4 billion.*
Spurred by recently-implemented EMIR regulations around clearing thresholds as well as the implications of the new leverage ratio and Basel III capital requirements, market participants have been eager to eliminate as much gross notional exposure as possible in their OTC derivative portfolios.
With 10 participants, including energy firms and financial institutions, the terminated trades covered a broad spectrum of energy swaps:
• Power (physical forwards): Amprion (Germany), RTE (France), TenneT (Netherlands), NGrid (UK), TERNA (Italy), CEPS (Czech), SEPS (Slovakia), PSEO (Poland), SwissGrid (Switzerland), and MAVIR (Hungary)
• Power (financial swaps): OMEL (Spain), PUN (Italy)
• Natural Gas (physical forwards): NBP (UK), NCG (Germany), Gaspool (Germany), PEG (France), TTF (Netherlands), CEGH (Austria), and PSV (Italy)
• Coal (financial swaps): API#2, API#3, API#4
“Interest in our energy compression activities has grown steadily over the past year as firms adjust to a new marketplace and regulations.” said Mattias Palm, TriOptima’s business manager for commodities. “We are seeing strong support continue among commodities market participants for both our triReduce compression and triResolve portfolio reconciliation services as firms implement new risk management tools.”
*All transaction data is double counted.
