Capital, funding and risk optimization

A low touch, cross-asset class optimization service targeting multiple risk measures simultaneously.

Celebrating one year of SA-CCR capital optimisation

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.

Optimisation of counterparty credit risk allows proactive management of capital and funding exposures for OTC derivatives portfolios. TriOptima’s 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 standardised 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

Our solution supports all major asset classes.

Network built for optimal efficiency

Achieve optimal efficiency by joining our large and growing network of participating firms. Over decades, TriOptima’s award winning optimization and compression services, have attracted a strong network with more than 200 regularly participating firms, forming the foundation for current and future optimisation offerings.  Over 40 firms are already optimising counterparty credit risk (CCR) to reduce capital and/or funding exposures – driving cost savings up to $100 million per year for the industry.

Innovation timeline

Features and benefits

Easy to use

Be live within a day. The web-based service requires no installation and you receive support from our expert team at no additional cost.

Global

Global presence with local expertise (New York, London, Stockholm, Singapore, Tokyo) and 24/5 support.

Expertise

20 years of experience in post-trade optimization with a fully developed network of participants.

Trusted

A reliable process underpinned by a robust legal framework and ISO 27001 certification since 2009.

Multilateral

A multilateral solution for maximum optimization efficiency.

Reliable

Scalable, low touch, and consistent while maintaining market risk neutrality.

Automated and low touch

Our simple, highly automated three step process leverages trusted third partnerships with best practice STP solutions to ensure scalable and efficient intraday optimization.

How it works

1

Input data submission

  • Customer derived exposure data
  • Exposure data from 3rd parties
  • Golden records

2

Capital and IM Optimisation

Tolerances, adjustments and optimisation objectives submitted via API & GUI – proposal generated by triBalance.

3

Implementation and trade booking

Trade booking leveraging market standard STP network, API or in-house trade booking scripts.

4

Risks reduced

New trades will offset and reduce counterparty credit risk, cost of funding IM an the size of capital exposures.

MORE ABOUT THE SA-CCR TRANSITION

Integrate and extend with innovative services

Explore our comprehensive range of related, intuitive, web-based services.

Counterparty risk and margin optimization – lower IM funding costs and SA-CCR requirements, free up collateral and reduce systemic risk.

Reduce operational risk and cost by lowering gross notional and eliminating line items.

Contact a SA-CCR optimization expert

We’re here to help you configure our services to work for you.

Need technical support? Give us a call.

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