DBS Bank taps TriOptima for OTC derivatives portfolio reconciliation

Source: TriOptima

DBS Bank (DBS), South East Asia's largest bank, has joined triResolve, the leading counterparty exposure management service for OTC derivatives portfolio reconciliation and dispute resolution.

triResolve offers regional banks and buy side institutions with OTC derivatives portfolios a fully-automated process for exchanging data with counterparties, advanced analytics of mark-to-market value discrepancies, and a robust dispute resolution tool.

DBS made the decision to join triResolve after testing the service extensively in the APAC pilot program for proactive portfolio reconciliation organized by the International Swaps and Derivatives Association (ISDA).

"As a leading bank in Asia, it is important for DBS to execute bilateral trade reconciliation with our global counterparts effectively regardless of their time zone," said Sandra Stonham, Managing Director of Technology and Operations, DBS Bank. "triResolve helps facilitate interactive communication with counterparts on the reconciliation status and its proactive approach enables us to identify credit risks or unusual trade differences quickly. Since adopting the service, we have been able to reduce reconciliation run times by up to 85 per cent."

Currently, 5.8 million trades are regularly reconciled through triResolve, most daily. This represents 75% of all non-cleared OTC derivative transactions. Users include the G-14 banks, hedge funds, asset management firms, asset servicers, other buy side organizations, and regional banks. Proactive portfolio reconciliation is a key risk management tool for minimizing credit and operational risk exposure in an OTC derivatives portfolio and is the basis for accurate movement of collateral which further reduces counterparty exposure.

"We are pleased that DBS has decided to join triResolve," said Peter Weibel, CEO of TriOptima Asia Pacific. "Portfolio reconciliation and the triResolve service play an important role in meeting regulatory demand for improved risk management controls and ensuring efficient, safe and sound derivatives markets."

In addition to all types of credit derivatives, triResolve participants submit all ththeir FX, equity, commodity, energy, interest rate, and structured derivative trades to the triResolve service for reconciliation. Over four million trades are now reconciled daily on the triResolve service.

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