TriOptima announced that its portfolio reconciliation service, triResolve, is now regularly reconciling more than 50 percent of all collateralised OTC derivative transactions globally, up from 40 percent in June.
The Operations Management Group (OMG), an industry body including the leading dealers, committed to weekly proactive portfolio reconciliation by large portfolio holders of OTC derivatives by the end of 2008 in a July 31 letter to the Federal Reserve Bank of New York. With over half of all collateralised transactions now reconciled on triResolve, dealers look set to honour that commitment on time.
Clients using triResolve include asset managers, hedge funds, investor service providers, 14 of the Fed 16 banks, and other sell-side institutions. More than 9 million trades from both sides of 1000 bilateral relationships are regularly reconciled on triResolve.
"The benefits of portfolio reconciliation are significant in terms of mitigating risk and reducing operational challenges," said Eraj Shirvani, Managing Director and Head of European Credit at Credit Suisse. "Trioptima's work in this field is groundbreaking. It is critical that the industry work together to implement reconciliation capabilities more widely." Mr Shirvani is closely involved in a range of initiatives to mitigate credit and operational risk across the industry through his roles as Chairman of the International Swaps and Derivatives Association (ISDA), and as a Board member for both The Clearing Corporation and the Depository Trust & Clearing Corporation's DerivServ.
Developed with guidance from several major OTC derivatives dealers, triResolve facilitates speedy resolution of collateral disputes by drilling down to the underlying causes of disagreement. triResolve transforms typical reactive, dispute-only reconciliations into proactive weekly and daily bilateral matching of trade portfolios.
Viktor Johannsson, triResolve business manager, said, "In these times of market stress users of triResolve who have been actively reconciling for months are able to respond immediately to disputes and manage their credit exposures effectively. We offer the most flexible and comprehensive reconciliation service around. triResolve users will easily meet the OMG commitment to the NY Fed of weekly proactive reconciliation. In fact, as market events demand that daily reconciliations become the norm, that standard is easily achievable on triResolve."