Global post-trade services provider, OSTTRA, has added Eurex Clearing to its interest rate initial margin (IM) and capital optimisation service, triBalance.
Erik Petri
The move will integrate Eurex’s over-the-counter (OTC) cleared contracts into OSTTRA triBalance optimisation runs, with the collaboration expected to reduce counterparty risk and add efficiencies to OTC derivatives portfolios.
The addition also marks an expansion triBalance’s current clearing house coverage, and is set to allow the service to provide greater initial margin and capital optimisation across major central clearing counterparties (CCPs).
The service currently also includes LSEG’s LCH, CME Clearing and Japan Securities Clearing Corporation (JSCC).
“This collaboration builds upon the strong relationships OSTTRA is cultivating with clearinghouses and other key entities in the derivative market landscape, thereby broadening global access and efficiency for portfolio optimisation,” said Erik Petri, head of optimisation at OSTTRA.
“As we continue to integrate more CCPs into the triBalance service, our clients will see continuous gains in margin and capital optimisation results, and importantly achieve risk reduction in venues previously beyond the scope of optimisation services.”
OSTTRA’s triBalance service covers both cleared and uncleared OTC asset classes, ranging across interest rate products, deliverable and non-deliverable FX forwards, equity derivatives, credit default swaps and commodity derivatives.
Danny Chart, global product lead, OTC IRD at Eurex Clearing, said: “In an environment of heightened market volatility, ensuring clearing members have access to risk management services like OSTTRA’s triBalance is paramount. Through this collaboration, we are empowering clearing members to shift bilateral interest rate risk into Eurex Clearing, and by doing so significantly reduce counterparty risk and enhance margin efficiency through effective netting.”
The integration marks a further development in a string of significant news for OSTTRA this year. In April, CME Group and S&P Global signed a definitive agreement to sell the provider to investment funds managed by KKR, in a deal valued at $3.1 billion.
KKR confirmed that it will focus on increasing OSTTRA’s investments in technology and innovation across the platform.