TriOptima and LCH.Clearnet are expanding their consolidation of unlinked, cleared interest rate swaps, eliminating 30 percent of New Zealand dollar (NZD) notional outstanding in first SwapClear NZD cycle.
Twelve SwapClear users eliminated NZD 902.3 billion (US $590.2 billion) in the first NZD compression cycle in LCH.Clearnet’s SwapClear.
According to SwapClear, this represents 30 percent of the NZD notional and 35 percent of the NZD line items outstanding in the clearinghouse.
Peter Weibel, CEO of triReduce, said: “The significant results in this cycle reflect the effect of unlinking trades in SwapClear and the compression efficiency achieved when trades are concentrated in one book rather than dispersed across many trading books in an organisation.”
“Recently we’ve seen similar results in SwapClear for South African rand swaps where we eliminated 42 percent of the line items and 38 percent of the notional outstanding in SwapClear.”
Currently TriOptima and LCH.Clearnet’s SwapClear offer compression cycles for 13 currencies, several of which have been subjected to TriOptima compression cycles.
