Issue 1 2021 ‒ Compression and Optimization Report


CME Group and IHS Markit to form leading post-trade services joint venture for OTC markets

The new company will include trade processing and risk mitigation operations. It will incorporate CME Group's optimization businesses –Traiana, TriOptima, and Reset – and IHS Markit's MarkitSERV.

triBalance completes first FX SA-CCR optimization cycle

We completed the first triBalance FX cycle optimizing both SA-CCR and initial margin exposures to maximize capital efficiencies for our network of 30 banks.


triReduce FX counterparty exposure

triReduce has introduced counterparty exposure optimization into FX compression cycles. We now have clients live in each cycle, optimizing on: offsetting for leverage ratio improvement, risk rebalancing for RWA, and PFE Reduction under SA-CCR, as well as the more traditional compression for gross notional reduction. Despite challenging market conditions, 2020 saw YoY growth of 140% for net notional optimization.

Innovation in FX post trade

Mattias Palm, head of triReduce FX, presented at the FX Markets Asia virtual conference on "How Innovation Is Reshaping the FX Market – a Post-trading Perspective."


triBalance counterparty risk optimization service can help:  

  • Reduce the cost of funding Initial Margin 
  • Reduce capital requirements for SA-CCR and RWA
  • Free up collateral, for more efficient use of operational resources
  • Reduce contagion and systemic risk
  • Holistically optimize and reduce the cost of running a trading book

The size of our network of clients allows counterparty risk to be rebalanced and managed between counterparties multilaterally to maximize efficiency.

triReduce Credit

We've launched a brand new website, built on an upgraded platform that enables a deeply streamlined compression process for our users.

Latin American currencies

LatAm compression is accelerating, we have compressed over 12 trillion USD across Brazilian real and Mexican peso IRS at CME Group since launch, rolled out trade revision in MXN and added Colombian and Chilean peso IRS in 2020.

APAC currencies

Record participation from direct members, clients, and clearing brokers drove SGD compression to over 1.8 trillion notional reduced, more than 46% of the outstanding in LCH. We also extended our currencies adding USD/NZD cross-currency swaps and the Thai baht, our 10th cleared regional currency.

Low Touch Compression

Customers at Japan Securities Corporation (JSCC) can now benefit from improved compression efficiencies and streamlined processes, including electronic acceptance and co-mingled cycles - IRS, basis, OIS, and client cleared.

triReduce benchmark conversion

Bringing certainty to legacy benchmark transition

As part of our continued rollout of triReduce benchmark conversion, we will be offering all cycle participants the opportunity to test receiving risk replacement trades as part of their triReduce Unwind Proposal. These risk replacement trades play an integral role in the proactive management of any benchmark transition for interest rate swaps.


TONA risk replacement trades now live in JSCC

TriOptima completed the first triReduce enhanced compression Japanese yen cycle, which included Tokyo Overnight Alternative Rate (TONA) risk replacement trades. The cycle took place on December 4, 2020 at the Japan Securities Clearing Corporation (JSCC).

First benchmark conversion with SONIA risk replacement trades at LCH SwapClear

triReduce benchmark conversion has the capacity to run conversion alongside compression at scale, helping participants proactively reduce their exposure while increasing their adoption of the alternative reference rates in currencies impacted by benchmark reform.

Federal Reserve Board, Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency Statement on LIBOR transition

'Ask an expert' video series

Delivering certainty in uncertain times

Learn how TriOptima combines the reduction of gross notional exposure and the conversion of net risk exposure to deliver outsized results.

What should buy-side firms think about when preparing for benchmark conversion?

Vikash Rughani, Business Manager at triReduce, outlines a new approach enabling buy- and sell-side participants to optimize the conversion of legacy ICE LIBOR OTC swaps.

Webinar: triReduce benchmark conversion

Transition your existing legacy OTC ICE LIBOR swap portfolios to the new alternative reference rates, or risk-free rates (RFRs). ​​​


FX Markets Asia: Post trade service

Winner's article

Video Q&A

FX Markets e-FX: Best compression/optimization service for FX

Winner's article

Global Capital Americas: Compression Service of the Year

Winner's article

FTF Awards: Service Provider of the Year

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