OSTTRA’s TriOptima, a leading infrastructure provider that lowers costs and mitigates risk in OTC derivatives markets, today announced a new trade refactoring solution that enables financial institutions to transform their swap portfolio with the most efficient amount of notional. The trade refactoring system is covered by U.S. Patent Number 10,803,456 and other pending U.S. and international patents and applications.
Previously, market participants would experience a buildup of historic trades lacking the necessary offsets to unlock compression. TriOptima’s trade refactoring solution unlocks the historic population of trades, which can lead to a lower steady state of gross notional. This new technique can deliver increases of well over 25% in gross notional compression for market participants.
The refactoring solution is available for all cleared currencies and comes at a time when market participants are preparing for benchmark cessation and the Globally Systemic Investment Banks (G-SIB’s) are looking to compress any extra notional ahead of year-end.
“With benchmark cessation looming, we continue to innovate to support market participants in maximising their notional compression and simultaneously achieving their cessation goals,” said Philip Junod, Senior Director, triReduce and triBalance Business Management. “Market participants can now significantly reduce their notional before those all-important year-end deadlines.”