Osttra Unveils Swaps Refactoring Solution
Posted by Colin Lambert. Last updated: October 28, 2021
TriOptima, a unit of the recently formed Osttra, a joint venture of CME Group and IHS Markit, has announced a new trade refactoring solution that enables financial institutions to transform their swap portfolio with the most efficient amount of notional.
Previously, market participants would experience a build up of historic trades lacking the necessary offsets to unlock compression, the firm says, adding that it trade refactoring solution unlocks the historic population of trades, which can lead to a lower steady state of gross notional. Osttra claims the new technique can deliver increases of well over 25% in gross notional compression for market participants.
The refactoring solution is available for all cleared currencies and comes at a time when market participants are preparing for benchmark cessation and the Globally Systemic Investment Banks (G-SIB’s) are looking to compress any extra notional ahead of year-end.
“With benchmark cessation looming, we continue to innovate to support market participants in maximising their notional compression and simultaneously achieving their cessation goals,” says Philip Junod, senior director, TriReduce and TriBalance business management. “Market participants can now significantly reduce their notional before those all-important year-end deadlines.”