TriOptima, an infrastructure service that lowers costs and mitigates risk in OTC derivatives markets, has reduced notional outstanding at Eurex Clearing by 26 per cent following a record compression run on 26 June, 2019.

The latest run, which equates to USD3.9 trillion worth of cleared euro interest rate swaps (IRS) and Forward Rate Agreements (FRAs), represents a 143 per cent increase on the previous record of USD1.6 trillion.

The record comes as market participants continue to utilise TriOptima’s triReduce service to cut their gross notional exposure. By eliminating transactions through triReduce in a clearing house environment, firms go one step further to meeting regulatory demands of reducing systemic risk across the global financial markets.

“TriOptima is pleased to have helped market participants reduce their notional outstanding at Eurex Clearing in such a meaningful way. This degree of compression underlines the impact of our unparalleled multilateral network, bringing the most members together in a single venue to deliver significant operational and capital savings,” says Michael Modlock (pictured), Global Head of Sales and Relationship Management, triReduce. “Working with Eurex Clearing since 2015, our unrivalled low-touch service continues to see greater efficiencies as membership grows and inventory increases.”

Danny Chart, Head of Business Development at Eurex Clearing, says: “We are extremely pleased with this record triReduce compression cycle. It highlights the importance of reducing gross notional exposures for our clients as they continue to develop OTC liquidity at Eurex Clearing. This reinforces how vital compression services such as triReduce are to delivering regulatory and capital efficiencies to the market.”