Partners

LCH.Clearnet is the leading independent clearing house, serving major international exchanges and platforms, as well as a range of OTC markets. It clears a broad range of asset classes including: securities, exchange traded derivatives, energy, freight, interbank interest rate swaps and euro and sterling denominated bonds and repos; and works closely with market participants and exchanges to identify and develop clearing services for new asset classes.

SwapClear

SwapClear is the only truly global clearing service for over-the-counter (OTC) interest rate swaps – clearing one third of the IRS market with USD215.5 trillion in notional trades outstanding.

Launched in 1999 by LCH.Clearnet, SwapClear initially cleared plain vanilla interest rate swaps in four major currencies. Today, it clears swaps in 14 currencies; USD, EUR, JPY and GBP out to 30 years and the remaining 10 currencies out to 10 years. It also clears OIS out to 2 years in USD, EUR, GBP and CHF. Over the last ten years, LCH.Clearnet has worked closely with market participants to build SwapClear into a leading and successful inter-dealer OTC clearing service providing a range of benefits to the inter-bank market.

MarkitWire

Instant Legal Confirmations ... Automated Workflow ... Straight-Through-Processing ...Trade Capture

With its powerful capabilities and functionality, Markit Wire is the definitive system for processing trades in the OTC derivatives market. It is the only network to fully automate workflow from point of trade, through to managing trade life cycle events and feeding downstream systems. Trades are confirmed in one step - and on trade date - with all involved. Re-booking rates are cut dramatically, reducing risk and eliminating operational delays.

The front office friendly interface minimises data entry, trade life cycle events are fully supported and flexible integration options allow for full STP or standalone mode. Equity, Interest Rate, Inflation and Credit Derivative products are catered for.

TriOptima AB

triReduce - Portfolio compression essential for minimizing risk

TriOptima introduced its portfolio compression service, triReduce, in 2003 for the interest rate swaps market and moved into the CDS space soon after to help dealers alleviate processing pressures. It quickly became an integral part of the industry's response to managing the explosive growth in back office processing. Unnecessary trades that inflate the balance sheet and generate operational costs, risks and other capital charges are terminated through the multilateral compression of OTC contracts.

During the crises surrounding the collapse of Bear Stearns and Lehman and the subsequent freezing of the credit markets, regulators identified portfolio compression as essential for minimizing risk and increasing liquidity in the financial markets.

In October 2008 ISDA cited the contribution that TriOptima had made to reducing notionals outstanding in the credit default swap market. triReduce Credit compression cycles terminated $24.5 of the total $25 trillion in notional eliminated through October 31.

Increase liquidity and reduce counterparty exposures

Utilized by all institutions with significant trading flow in interest rate and credit default swaps, triReduce Rates and Credit compression is recognized as an essential operational tool both by financial institutions and the regulatory community.

TriOptima now runs compression cycles for interest rate swaps in 21 currencies globally and for the full range of CDS index, tranche and single name products. In addition, when there are credit events TriOptima runs special default cycles for CDs single name and indices prior to the settlement auctions. triReduce Energy continues to ramp up its participation base to include financial institutions, energy companies and energy trading companies.

As cited in the BIS study, "New Developments in Clearing and Settlement Arrangements for OTC Derivatives" released March 16 2007 "...increasing use of multilateral termination systems…allow market participants to reduce counterparty credit, funding liquidity and operational risks." The study conclusions recommend that "...market participants should expand their use of new services that facilitate multilateral voluntary termination of trades."