Press release - September 25, 2008
TriOptima confirmed that the 12% decline in CDS notional outstandings announced today by ISDA is primarily due to its triReduce tear up cycles in the first half of 2008. Despite robust trading activity in the first six months of the year, TriOptima’s termination of $17.4 trillion in interdealer CDS notional principal during this period contributed to the overall decline.“As the sole provider of portfolio compression services in the first half of 2008, we can confirm that tear ups were a positive factor in stabilizing the growth in notional principal levels that had attracted the attention of regulators, “said Brian Meese, Group CEO. “We have long believed that aggressive use of tear ups is one of the most effective ways to manage risk, and a vital complement to central counterparty activities. We include all dealer counterparties, not just a few, and we eliminate, rather ... more »
