This has been extending to prime brokers and executing brokers, bringing buy-side trades into scope. for Benchmark Conversion 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. Over the past 18 months we have focused on expanding into other asset classes, most notably FX, where we’ve seen particularly strong growth in the last six to nine months with volumes up about 70% from the previous year. Simultaneous compression in the alternative benchmark helps keep overall gross notional down throughout the conversion process. Including buy-side participants widens the scope of impacted entities that we can include in the cycles. The compression services we offer are designed to respond to increases in balance sheet pressures, leverage ratios and general collateral rules, which are common constraints on banks’ activities - whether they’re global banks or regionally based banks in Asia. LONDON and NEW YORK, Oct. 29, 2020 /PRNewswire/ -- TriOptima, a leading infrastructure service that helps to lower costs and mitigate risk in OTC … The firm says this re cord, which represents an annual increase of 31% in terms of notional value, was driven by a combination of increased participation of … triReduce Completes First Benchmark Conversion With SONIA Risk Replacement Trades. We have produced a triReduce Benchmark Conversion Q&A sheet with answers to the questions that were raised during the webinar. Rowcliffe: TriOptima helps clients in Asia in several ways. TriOptima explains how it combines the reduction of gross notional exposure and the conversion of net risk exposure to deliver outsized results, partnering its portfolio compression network with core net ICE Libor over-the-counter (OTC) swap portfolios. Benchmark conversion Reduce gross notional across ICE LIBOR swaps and the alternative benchmark. The triReduce compression services bring significantly enhanced value to what would be a largely manual and bilateral process. Adoption of alternative RFRs in OTC IRS portfolios Lastly, our triBalance service has also recently expanded into commodity exposures. As of late last year, we included gold as one of the asset classes in a triBalance initial margin optimisation cycle, as well as running margin optimisation across FX and commodities at the same time. Learn why traders use futures, how to trade futures and what steps you should take to get started. Risk-based constraints allow each participant to control the amount of conversion taking place. ... Webinar: TriReduce Benchmark Conversion. Rowcliffe: We are always monitoring how the regulatory environment is evolving, and how the changes impact our clients. XVA and valuation Run XVA risk calculations and independent trade valuations. 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. The power of a multilateral approach to compression, versus a bilateral approach, brings a number of benefits. triReduce completes first benchmark conversion with SONIA risk replacement trades Thirty two firms join AcadiaSoft and TriOptima's IM Phase 5 soft launch programme CME Group launches FX Options Volatility Converter tool FairXchange launches Pricing Stack Analysis TriOptima. One of the judges highlighted that use triReduce compression and benchmark conversion to perform the “heavy lifting” frees up firms to address the issues of more complex trades. It largely brings a lot of operational and cost efficiencies in optimising those exposures. All of those factors drive a desire or a need to compress portfolios. PUBLISHED: Benchmark conversion 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. TriOptima AB. 'The triReduce benchmark conversion service has the capacity to run conversion alongside compression at scale, helping participants proactively reduce their exposure at the same time as increasing their adoption of the alternative reference rates in currencies impacted by benchmark reform.' TriOptima provides frequent compression cycles in all the major Central Counterparty clearing houses in all cleared currencies. Regulation Asia:  Why have the buy side only just begun to utilize compression? TriOptima is a part of CME Group. Stream live futures and options market data directly from CME Group. Multilateral compression can help market participants to reduce their gross notional and line items while keeping their swap positions market risk neutral overall. Disclaimer  |  Privacy Policy  |  Cookie Policy  |  Terms of Use  |  Data Terms of Use  |  Modern Slavery Act Transparency Statement  |  Report a Security Concern. CME Group is the world's leading and most diverse derivatives marketplace. TriOptima explains how it combines the reduction of gross notional exposure and the conversion of net risk exposure to deliver outsized results, partnering its portfolio compression network with core net ICE Libor over-the-counter swap portfolios. "The triReduce benchmark conversion service has the capacity to run conversion alongside compression at scale, helping participants proactively reduce their exposure at the same time as increasing their adoption of the alternative reference rates in currencies impacted by benchmark reform." triReduce’s benchmark conversion service offers users an iterative approach to mitigating uncertainty about the future of ICE Libor swaps. Each party sets constraints on outright risk, as well as the basis risk between the various ICE LIBOR term rate tenors and the alternative benchmark, providing each firm with certainty throughout the conversion process on their risk impact. Search our directory for a broker that fits your needs. Benchmark conversion. Determine your needs: ... TriOptima completed the largest-ever compression of FX forwards. ... CME Group also offers optimization and reconciliation services through TriOptima, and trade processing services through Traiana. How Covid-19 is impacting transition preparations, Modern Slavery Act Transparency Statement. “We are proud that another record compression year continues to help the industry achieve important capital and operational cost reductions,” said Peter Weibel, Co-CEO TriOptima. Bilateral net reductions increased by 135%, 40% more gross notional compressed … In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing. TriOptima, a provider of multilateral compression services for OTC markets, set a new record for its triReduce portfolio compression service in 2018, having compressed $250 trillion gross notional value of trades at LCH SwapClear.. In triReduce compression cycles, gross exposures are brought down towards each firm’s core net risk position. In a situation where you have a lower inventory of transactions, and you’re governed by slightly different economics, the need to compress transactions has a different priority. This is a trend that’s currently accelerating as a result of the increased impact of G-SIBs [globally systemically important banks] – at which gross notional is highly determinative. Get quick access to tools and premium content, or customize a portfolio and set alerts to follow the market. If you look outside of compression services, the other key regulatory drivers for us in the region and globally are the uncleared margin rules. The service is based on and embedded in the existing triReduce line-item compression service. 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. Regulation Asia sat down with Guy Rowcliffe, Global Head of Optimization Services at CME Group, to understand how its TriOptima business is supporting the market need for benchmark migration, along with its other regulatory driven initiatives. When you think of TriOptima’s trading model, our network and multilateral underpinning creates significant volume growth as you add new participants to the network, and that’s what we’ve seen very much in regards to FX. This is important for two reasons: firstly, it also allows more aggressive compression of outstanding ICE Libor swap inventories, and secondly, it provides for the replacement of ICE Libor swap trades with alternative reference rates while also reducing benchmark risk within the same process. TriOptima, a CME Group company, won an Outstanding Project award for ‘Benchmark Transition Management’ and was highly commended in the ‘Initial Margin Compliance’ category in the 2nd Regulation Asia Awards for Excellence 2019 at a ceremony in Singapore on 13 November 2019. Rowcliffe: At TriOptima, we felt we had the basis for helping market participants transacting OTC swaps to achieve an efficient and orderly transition if they choose to move between benchmarks, based off our multilateral compression cycle pool, which forms the foundation of our existing compression services. Regulation Asia: TriOptima was recently awarded ‘Outstanding Project’ for its benchmark conversion service. The initial steps in becoming an Approved Compression Service Provider (ACSP) require LCH to review and agree that the potential ACSP will meet the following criteria: Meets the definition of SwapClear compression services as per LCH rulebook TriOptima has three key services where we’re providing clear efficiencies in this space. - TriOptima AB - Quantile Technologies Limited - Capitalab, a division of BGC Brokers L.P. Can you tell us more about this service? Historically, our clients were almost exclusively major sell-side institutions, using our services for their trading operations. Another key service for us is triBalance, which allows clients - again using a multilateral liquidity pool and network - to optimise their counterparty risk exposures and margin across multiple asset classes. Vikash Rughani, triReduce and triBalance business manager, speaks with Risk.net about key industry concerns around the transition away from Libor, including how the discontinuation deadline will be impacted by the Covid‑19 pandemic, the benefits and challenges of pre-cessation triggers, and how firms are preparing for ‘big bang’ discounting switches. Will be available to all market participants in 2020, Participants retain complete control of their market risk, Deep liquidity pool, proven process and established connectivity to CCPs and market infrastructure, Can support multiple benchmarks and term rates, as required. Understand how the bond market moved back to its normal trading range, despite historic levels of volatility. This is a unique differentiator from other vendors as it streamlines the workflow for clients entering and completing compression cycles. : 556584-9758. SONIA swaps) within participants defined risk tolerances. “The triReduce benchmark conversion service has the capacity to run conversion alongside compression at scale, helping participants proactively reduce their exposure at the same time as increasing their adoption of the alternative reference rates in currencies impacted by benchmark reform.” It increases the efficiency significantly. Rowcliffe: A significant part of the buy-side didn’t utilize compression because of the nature of their trades or the risk they had; they often had smaller scale and much more directional swap trades. View all. 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. While the issues in OTC swaps are widely known, the degree of understanding and adoption or extent of the impact varies across markets. 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. Operationally, being able to enter a compression exercise against multiple counterparties at the same time brings its own internal efficiencies on the client side. Access real-time data, charts, analytics and news from anywhere at anytime. Compression for us is one key area where we significantly help Asian clients and in fact, we are the only compression provider for AUD, CNH, HKD, JPY, KRW, MYR, NZD, SGD, THB, TWD. Org no. A portion of the remaining ICE LIBOR swap exposure, that cannot be compressed through terminating trades or amending their terms, can be converted to the new benchmark through the introduction of risk replacement trades in the alternative reference rate, as part of the regular triReduce compression cycles. 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. TriOptima's multilateral approach to portfolio compression is helping the sell-side and buy-side alike to reduce ICE Libor risk, optimise capital, and enhance operational efficiency. TriOptima Discusses Benchmark Conversion, Compression, Margin Rules. The company is comprised of four Designated Contract Markets (DCMs). Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX. TriOptima Benchmark Conversion for CCP portfolios The new service converts legacy IBOR trades (e.g. 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. Hear from active traders about their experience adding CME Group futures and options on futures to their portfolio. Get the latest TriOptima services news, product information and more. Learn how to transition your existing legacy OTC ICE LIBOR swap portfolios to the new alternative reference rates, or risk-free rates (RFRs). Through our triResolve and triResolve Margin services, we help clients reconcile their portfolios, calculate and reconcile initial margin with counterparties, minimise counterparty exposures, and optimise net funding amounts. We run offshore compression for non-deliverable CNY, INR AND KRW and are the only provider of cross-currency swap compression for USD/JPY, USD/KRW, USD/HKD, USD/CNH, USD/AUD, USD/SGD. 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trioptima benchmark conversion

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