LONDON, Jan. 14, 2020 /PRNewswire/ -- TriOptima, the
leading multilateral compression provider that lowers costs and
mitigates risk in OTC markets, today announced that
counterparties using the triReduce CLS FX compression service have
eliminated $9.1 trillion of gross
notional value from their FX forward portfolios in 2019. A
new record for the service, this equates to an annual increase of
71%.
In Q4 alone, the service compressed $4.9
trillion of gross notional value, 153% above the previous
quarterly high achieved in Q3 2018. The new record was driven by
increased participation from the prime broker and executing broker
community, larger trade populations being submitted for compression
and increased year-end activity as market participants manage their
risk exposure and capital charges.
"As FX forwards volumes continue to grow, and in response to
capital rule changes and increased regulatory interest in FX
compression, clients have a greater need for flexible risk
mitigation services to achieve capital and operational
efficiencies," said Guy Rowcliffe,
Global Head of Optimization Services and TriOptima, CME Group. "We
are pleased with this new milestone for FX forwards compression and
look forward to extending our service offering in 2020."
"The increase in notional reductions seen in 2019 demonstrates
the value triReduce CLS FX continues to deliver for our clients,"
said Alan Marquard, Chief Business
Development Officer, CLS. "It enables them to further improve their
capital efficiencies and significantly reduce risk, while
contributing to the smooth and efficient running of the FX
market."
"Citi remains committed to working closely with its clients to
drive capital efficiencies by maximizing notional compression
opportunities across the industry," said Chris Perkins, Global Head of Foreign Exchange
Prime Brokerage and OTC Clearing, Citi. "Our business model greatly
benefits from the notional we have eliminated through the triReduce
CLS FX service."
The triReduce CLS FX service provides capital optimization and
risk mitigation for the global FX community, combining TriOptima's
triReduce multilateral compression service with CLS's
infrastructure and market connectivity. During 2019, work continued
with the FX derivatives community and infrastructure providers to
further enhance and extend the service, with more than 20 banks now
participating. Clients of the service have benefited from enhanced
capital efficiency and leverage ratios, reduced operational risk
and cost, and the ability to proactively manage credit risk without
fundamentally changing their market positions.
TriOptima is a part of CME Group. For more information on
TriOptima offerings, visit: https://www.trioptima.com/
TriOptima is a leading multilateral compression provider that
lowers costs and mitigates risk in OTC derivatives markets and is a
part of CME Group. As the world's leading and most diverse
derivatives marketplace, CME Group (www.cmegroup.com) enables
clients to trade futures, options, cash and OTC markets, optimize
portfolios, and analyze data – empowering market participants
worldwide to efficiently manage risk and capture opportunities. CME
Group exchanges offer the widest range of global benchmark products
across all major asset classes based on interest rates, equity
indexes, foreign exchange, energy, agricultural products and
metals. The company offers futures and options on futures
trading through the CME Globex® platform, fixed income trading via
BrokerTec and foreign exchange trading on the EBS platform.
In addition, it operates one of the world's leading central
counterparty clearing providers, CME Clearing. With a range
of pre- and post-trade products and services underpinning the
entire lifecycle of a trade, CME Group also offers optimization and
reconciliation services through TriOptima, and trade processing
services through Traiana.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange,
Globex, and, E-mini are trademarks of Chicago Mercantile Exchange
Inc. CBOT and Chicago Board
of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York
Mercantile Exchange and ClearPort are trademarks of New York
Mercantile Exchange, Inc. COMEX is a trademark of Commodity
Exchange, Inc. BrokerTec, EBS, TriOptima, and Traiana are
trademarks of BrokerTec Europe LTD, EBS Group LTD, TriOptima AB,
and Traiana, Inc., respectively. Dow Jones, Dow Jones
Industrial Average, S&P 500 and S&P are service and/or
trademarks of Dow Jones Trademark Holdings LLC, Standard &
Poor's Financial Services LLC and S&P/Dow Jones Indices LLC, as
the case may be, and have been licensed for use by Chicago
Mercantile Exchange Inc. All other trademarks are the
property of their respective owners.
CLS and the CLS logo are registered trademarks of CLS UK
Intermediate Holdings Ltd.
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SOURCE CME Group