triReduce CLS FX eliminated USD4 trillion notional value in 2017

2017 was a year of sustained growth for our award-winning FX compression service - triReduce CLS FX.

An additional six banks joined the service with nearly USD4 trillion in gross notional value eliminated over the course of the year, with almost half achieved in the last quarter.

The rapid growth is a result of the network effect of increased interest by participants in terms of both participation and submission rates. A significant upgrade was also made to the service, offering clients the ability to both compress trades and offset exposure with new trades where required. With both the compress and replace option running simultaneously with the offsetting process, we anticipate that participation will continue to widen and the network effect of the service will accelerate.

The success of the service and its contribution to the smooth and efficient running of the FX market was recognized when triReduce CLS FX won the “Best New Technology Product – post trade” at the FOW International Awards at the end of 2017.

Both of the organizations involved in this collaboration are market leaders in their fields and have demonstrated their value to the market already

 

Looking forward

Ongoing regulatory developments, such as the inclusion of a leverage ratio surcharge for global systemically important banks (G-SIBs) in the Basel III standards, put an ever increasing premium on banks’ balance sheets and make services such as triReduce CLS FX more and more relevant. In this dynamic environment, CLS and triOptima will continue to develop the compression service to deliver additional value for our clients. It is now connected to the Thomson Reuters Trade Notification (TRTN) service, enabling full straight-through processing for trades in the offsetting service. This enhancement will be available to clients in the first quarter. There are also plans to expand the service beyond CLSSettlement members to CLS third parties, making compression services available to a much wider audience including the buy side.

 

Compression factsheet

 

FX Week interview - triReduce CLS FX

 

                

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