TriOptima, CME Completes First Mexican Peso Compression

Compression cycle eliminated 12.5 trillion Mexican pesos in outstanding notional.

clearing and settlement

TriOptima’s triReduce completed its first compression cycle for Mexican peso interest-rate swaps with the CME Group, the first compression in a cleared Latin American currency.

CME and TriOptima, which specializes in post-trade risk management solutions, eliminated 12.5 trillion in Mexican pesos (~$664 billion) notional outstanding. This represents over 35 percent of cleared principal outstanding in CME.

This result allows CME to deliver more capital efficiencies, said CME Clearing president Sunil Cutinho in a statement.

"With bilateral swaps facing higher capital costs and the implementation of uncleared margin rules starting September 1, the combination of voluntary clearing and multilateral compression provides significant value to our clients," Cutinho said.

TriOptima has completed about 20 Mexican peso cycles for uncleared trades since it started offering the service in 2007. It also ran at least six compression cycles for uncleared Brazilian real and Colombian peso trades.

CME and TriOptima have worked together in six other compression cycles for interest-rate swaps in dollars and Euros and will be adding more currencies soon. The partnership has eliminated $15.8 trillion in the total gross notional outstanding.

Recently, TriOptima announced it completed its first Swedish krona interest-rate swaps compression with Nasdaq.

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