OSTTRA announced that it’s recently conducted a series of trials as Canada’s markets transition to the new Canadian Overnight Repo Rate Average (CORRA) reference rate. The MarkitWire platform processed a staggering 200,000 messages during dress rehearsals conducted in collaboration with major clearinghouses such as LCH and CME, specifically focusing on the Canadian Dollar (CAD) market.
These trials involved 40 customers and demonstrated OSTTRA’s commitment to readiness for the cessation of the Canadian Dollar Offered Rate (CDOR) next month (June 28, 2024).
The trials also showcased OSTTRA’s triReduce service, which achieved a major feat in the first quarter by compressing CAD trades by over 70%, surpassing previous records. The triReduce platform, known for its ability to simplify portfolios by reducing notional exposures and line items for both cleared and non-cleared OTC derivative trades, has further expanded its capabilities with additional runs scheduled for the second quarter.
Multilateral compression opportunities across portfolios are at the core of OSTTRA’s strategy, empowering firms to mitigate risk and manage escalating balance sheet costs amidst growing resource constraints. The service spans a wide range of derivative products, including interest rate swaps, cross-currency swaps, credit default swaps, FX forwards, and commodity swaps. This comes at a crucial time when regulations are driving market participants worldwide to streamline their gross notional exposure through multilateral portfolio compression.”
“As market participants continue to gear up for the end of CDOR, multilateral compression not only mitigates risk but also addresses growing resource constraints, aligning perfectly with the industry’s need for efficiency amid growing cost pressures,” said Erik Petri, head of Optimisation at OSTTRA, in a statement “Our seamless integration with major central counterparties (CCPs) and infrastructure providers globally ensures that our clients can effortlessly participate in compression cycles with counterparts across the world.”