Q4 2021 Compression and Optimization Report



We are delighted to have won the following awards in Q4:

Asia Risk Awards

  • Libor Solution of the Year

FX Markets e-FX awards

  • Best Compression/Optimization for FX

FTF Awards

  • Service Provider of the Year

Thanks to all our customers for your support.

Credit optimization service launched ‒ allowing banks to reduce cleared risk

Our credit optimization service has already allowed 12 participants to eliminate more than $475 billion gross notional from cleared index CDS. It enables banks to simultaneously optimize multiple risk measures including notional, IM, and capital exposures on a multilateral basis.

“We appreciate triBalance for establishing a framework to optimize notional and capital for cleared credit products and look forward to future offerings targeting capital and IM reduction in the credit and mortgages space in the future.” 
Kaushik Murali, Global Head of Index Trading, Goldman Sachs

“Rebalancing credit risks across ICE Clear and LCH CDSClear is an important risk-management task and solutions to support dealers to achieve this will reduce market fragmentation and help deliver results for clients. Through a successful first session TriOptima: triBalance Credit has helped us to reduce initial margin and simplify positions, enabling us to continue delivering a best-in-class service”
Aymeric Paillat, Head of J.P. Morgan Global Credit Index Trading

Read the press release

New trade refactoring solution to support notional reduction drive

We announced a new trade refactoring solution that enables financial institutions to transform their swap portfolio with the most efficient amount of notional, unlocking the historic population of trades, which can lead to a lower steady state of gross notional.

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Osaka Exchange to compress index options powered by TriOptima

We successfully powered the inaugural compression of listed Nikkei 225 options at Osaka Exchange, enabling OSE members to reduce their open positions and lower the capital costs of index options.

Read the press release


Consistent growth in IM reductions

triBalance continues to deliver more value to our clients achieving consistent growth in IM reductions quarter on quarter. Several important improvements during the year have enabled this growth, with the addition of net optimization in the credit asset class being the latest.

triBalance rates and equity transitioned to reformed benchmarks

New risk-reducing trades generated as part of the triBalance rates and equity process are now referencing the reformed benchmarks SOFR and TONA for USD and JPY, respectively. This switch ensures that no triBalance trades referencing the legacy benchmarks will be live after year end.

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Benchmark conversion

In GBP, we've compressed over 16 trillion in GBP-LIBOR gross notional (160,000+ GBP-LIBOR trades).

Benchmark conversion live in CME

triReduce benchmark conversion functionality is now available in all CME rates compression cycles with indices subject to cessation.

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Webinar with Asia Risk: Managing Benchmark Conversion for OTC Swaps

Our panel of industry experts examine how market participants are transitioning their OTC swap portfolios in the Asia-Pacific region.

Watch now


Capital, funding, and risk optimization

Optimization of counterparty credit risk allows proactive management of capital and funding exposures for OTC derivatives portfolios. Our solution enables you to address the key issues that drive the cost of maintaining a portfolio simultaneously:

  • Capital costs, driven by leverage ratio as well as standardized and internal model-driven RWA via SA-CCR and IMM
  • Funding costs, resulting from non-cleared margin and CCP IM
  • Gross exposures impacting G-SIB, balance sheet, and general housekeeping


Celebrating one year of SA-CCR capital optimization

We have been running monthly optimisation cycles proactively managing SA-CCR and RWA exposures, while simultaneously optimising initial margin, for over a year. Firms from APAC, EU, UK, US and Canada have used the service since launch on 29 October 2020.

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On-demand webinar: Optimizing your business under SA-CCR

Our panel of experts discuss the implications of SA-CCR regulations for OTC derivatives portfolios and consider how banks can optimise both margin and capital.

Watch now

The Great Balancing Act: A Discussion about the Interplay Between UMR and SA-CCR

Over the last decade, global regulators have introduced several measures in the OTC derivatives market designed to increase financial market resiliency and mitigate counterparty credit risk. SA-CCR is the most recent measure to come to market. Our panel of experts discusses challenges and solutions for optimizing both UMR and capital under the SA-CCR regime and ways to reduce the size of capital buffers and initial margin funding costs.

Listen to the discussion

SA-CCR changes the game, but will it change how you play it?

The introduction of SA-CCR regulations changes the metrics used for deriving capital costs, switching the focus to counterparty credit risk. Will this fundamental change in methodology impact trading behavior and post-trade optimization?

Read the article


Compression and optimisation virtual update - powered by TriOptima

Join us to hear our latest news, what to look out for in 2022 and upcoming changes to our compression and optimisation services. Contact us to be added to the invitation list.

Contact us