TriOptima, a leading provider of OTC derivative post trade risk management services, announces today that 17 financial institutions eliminated $213 billion in the first USD/TRY (Turkish Lira) cross currency swap triReduce compression cycle.
Cross currency swaps are subject to both interest rate and foreign exchange rate fluctuations and are not currently cleared. They increase an institution’s credit and capital costs as well as its settlement risk.
Since cross currency compression began in April 2014, TriOptima has run eight successful triReduce cross currency swap compression cycles in USD/CAD, USD/EUR, USD/GBP, USD/JPY, USD/MXN (Mexican Peso) and USD/ZAR (South African Rand).
Additional cross currency compression cycles are planned in the currencies already offered and in new currencies including Chinese Yuan (CNH), Korean Won (KRW), and Russian Ruble (RUB). triReduce compression cycles can accommodate all transaction types whether they are float/float or fixed/float, resetting and non-resetting.
“Interest in cross currency compression cycles continues to grow,” said Peter Weibel, CEO of triReduce. “Reducing exposure in these transactions relieves operational and counterparty settlement stress and improves capital efficiency.”
