Impending regulatory changes in the Asia Pacific region have prompted leading financial institutions to proactively reconcile their portfolios and manage their collateral disputes, according to TriOptima.
TriOptima has reported that 78 firms in the Asia Pacific region are proactively using its triResolve portfolio reconciliation service, in anticipation of regional regulatory changes.
The number of firms using triResolve has grown 350 percent since 2012.
Market participants have begun to reconcile regularly to accommodate their US and European counterparties who are required to reconcile their portfolios and manage their collateral disputes in a timely manner.
“Although we are not currently required by our regulations to reconcile our portfolios, we find it to be best practice and very efficient,” said Brendan Byrne, head of collateral management and over-the-counter reform at Suncorp Bank in Australia.
“[The triResolve platform] is the perfect tool to manage this process, especially since all of our counterparties are using the service already. It also assists our counterparties with their regulatory obligations, particularly in Europe and the US.”
User of triResolve based in the Asia Pacific region cover a wide range of customer types including banks, insurance companies, securities firms, energy companies, hedge funds, investment managers, and sovereign wealth funds and government treasuries in Australia, Kong, Japan, Singapore, South Korea and Taiwan.
Yutaka Imanishi, CEO of TriOptima Asia Pacific, commented: “We see significant potential for more growth in the region as regulators continue to collaborate with [the International Organization of Securities Commissions] on setting risk mitigation standards.”
“The introduction of two-way variation margin in 2015 will necessitate firms adopt a robust reconciliation and dispute resolution process like that offered by triResolve.”
Currently triResolve has more than 1200 firms using the service globally, reconciling over 75 percent of all global over-the-counter derivative trades.
Cleared and exchange-traded transactions as well as repos and securities lending transactions can also be reconciled by triResolve.
Most recently TriOptima extended the triResolve service to reconcile unmatched trade data submitted to the newly-established swap data repositories in the US and Europe.
