Post-trade pair slash pending CAD IRS notional
09 October 2015 New York
Image: Shutterstock
TriOptima and SwapClear have eliminated 20 percent of inter-dealer notional outstanding in cleared Canadian dollar (CAD) interest rate swaps (IRS).
The post-trade service providers saw 18 clearing participants cut CAD $1.6 trillion (US $1.23 trillion) in LCH.Clearnet鈥檚 SwapClear.
鈥淥ur last two cycles have eliminated CAD $3.3 trillion (US $2.55 trillions) in outstanding CAD IRS in SwapClear, contributing to a further reduction in systemic risk for the market and regulatory capital for individual institutions,鈥� said Michael Modlock, head of triReduce North America.
鈥淲e continue to see greater compression possibilities as unlinking trades in the central counterparty provides a larger pool of eligible swaps for compression.鈥�
As clearinghouses unlink trades from the original counterparty to create 鈥榰nlinked trades鈥�, dependency on the participation of other clearing members is reduced, resulting in a larger pool of trades eligible for compression, according to TriOptima.
TriOptima and LCH.Clearnet鈥檚 SwapClear currently offer compression cycles for 13 currencies.
The post-trade service providers saw 18 clearing participants cut CAD $1.6 trillion (US $1.23 trillion) in LCH.Clearnet鈥檚 SwapClear.
鈥淥ur last two cycles have eliminated CAD $3.3 trillion (US $2.55 trillions) in outstanding CAD IRS in SwapClear, contributing to a further reduction in systemic risk for the market and regulatory capital for individual institutions,鈥� said Michael Modlock, head of triReduce North America.
鈥淲e continue to see greater compression possibilities as unlinking trades in the central counterparty provides a larger pool of eligible swaps for compression.鈥�
As clearinghouses unlink trades from the original counterparty to create 鈥榰nlinked trades鈥�, dependency on the participation of other clearing members is reduced, resulting in a larger pool of trades eligible for compression, according to TriOptima.
TriOptima and LCH.Clearnet鈥檚 SwapClear currently offer compression cycles for 13 currencies.
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