- Gross Notional Reductions Amount to $2.2 Trillion
Chicago, 3 September 2015 – CME Group, the world's leading and most diverse derivatives marketplace, announced today the completion of the first multilateral compression cycle in collaboration with TriOptima's triReduce compression service.
Nine CME Group IRS clearing members participated in the cycle, which compressed $2.2 trillion in gross notional, resulting in a reduction of 44,933 line items and an additional 6,900 line items partially terminated. Multilateral compression further enhances CME Group's compression offering, including Compression via Coupon Blending, which has already reduced total notional by more than $11 trillion and total line items by more than 180,000.
"With the ongoing implementation of Basel III, financial institutions are highly focused on improving their leverage ratios by gaining the greatest efficiencies possible," said Sunil Cutinho, President of CME Clearing. "CME Group is proud to deliver the most capital efficient solution to market participants, and our multilateral compression offering further solidifies our leadership position along with Compression via Coupon Blending and Portfolio Margining of Swaps and Futures."
"Our collaboration with CME Group enables its clearing members to access an important tool for reducing risk and complying with the new capital rules," said Peter Weibel, CEO of TriOptima. "These significant results are also another example of the efficiency of multilateral compression in an unlinked trade environment."
The elimination of these trades streamlines system processing and reduces operational and administrative burdens in the event of a default.
About CME Group As the world's leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through its CME Globe® electronic trading platform, its trading facilities in New York and Chicago, and through its London-based CME Europe derivatives exchange. CME Group also operates one of the world's leading central counterparty clearing providers through CME Clearing and CME Clearing Europe, which offer clearing and settlement services across asset classes for exchange-traded contracts and over-the-counter derivatives transactions. These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk.
CME Group is a trademark of CME Group Inc. The Globe Logo, CME, Globe and Chicago Mercantile Exchange are trademarks of Chicago Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are registered trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All other trademarks are the property of their respective owners. Further information about CME Group (NASDAQ: CME) and its products can be found at www.cmegroup.com.
About TriOptima TriOptima is the award-winning provider of post trade risk management services and infrastructure for OTC derivatives. Focused on reducing costs, eliminating operational and credit risk, improving counterparty exposure management, and reducing systemic risk, TriOptima offers a range of services: triReduce to reduce swap inventory and counterparty risk; triResolve to reconcile OTC derivative portfolios, manage disputes, validate repository data, and deliver an integrated margin management solution; triBalance to manage cleared and bilateral counterparty risk; and triCalculate to measure and analyze counterparty risk.
For more information go to www.trioptima.com.