CME Group Successfully Completes First Multilateral Compression Cycle Using TriOptima’s triReduce Service 

Gross Notional Reductions Amount to $2.2 Trillion

CME Group, the world’s leading and most diverse derivatives marketplace, announced today the completion of the first multilateral compression cycle in collaboration with TriOptima’s triReduce compression service.

Nine CME Group IRS clearing members participated in the cycle, which compressed $2.2 trillion in gross notional, resulting in a reduction of 44,933 line items and an additional 6,900 line items partially terminated.  Multilateral compression further enhances CME Group’s compression offering, including Compression via Coupon Blending, which has already reduced total notional by more than $11 trillion and total line items by more than 180,000.

“With the ongoing implementation of Basel III, financial institutions are highly focused on improving their leverage ratios by gaining the greatest efficiencies possible,” said Sunil Cutinho, President of CME Clearing.  “CME Group is proud to deliver the most capital efficient solution to market participants, and our multilateral compression offering further solidifies our leadership position along with Compression via Coupon Blending and Portfolio Margining of Swaps and Futures.”

“Our collaboration with CME Group enables its clearing members to access an important tool for reducing risk and complying with the new capital rules,” said Peter Weibel, CEO of TriOptima.  “These significant results are also another example of the efficiency of multilateral compression in an unlinked trade environment.”

The elimination of these trades streamlines system processing and reduces operational and administrative burdens in the event of a default.

Source: CME Group

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