{"id":15325,"date":"2014-03-10T11:41:55","date_gmt":"2014-03-10T11:41:55","guid":{"rendered":"https:\/\/wordpress-693215-2610341.cloudwaysapps.com\/index.php\/2014\/03\/10\/the-many-ways-to-compress-a-portfolio-swapclear-announcement\/"},"modified":"2014-03-10T11:41:55","modified_gmt":"2014-03-10T11:41:55","slug":"the-many-ways-to-compress-a-portfolio-swapclear-announcement","status":"publish","type":"post","link":"https:\/\/theotcspace.com\/the-many-ways-to-compress-a-portfolio-swapclear-announcement\/","title":{"rendered":"The Many Ways to Compress a Portfolio | SwapClear Announcement"},"content":{"rendered":"<p>There are many ways to reduce a portfolio and simply it for operational and economic purposes<\/p>\n<p><!--more--><\/p>\n<p>An announcment today from SwapClear has a variety of interesting notes on methods (existing and planned) to modify portfolios of OTC trades. The new announcement regards a multi-lateral option in additon to their &quot;solo&quot; and &quot;duo&quot; options, <a href=\"http:\/\/www.swapclear.com\/Images\/lchswapcompression.pdf\" target=\"_blank\" rel=\"noopener nofollow\">explained in this PDF brochure<\/a> (and attached below).<\/p>\n<ul>\n<li>Solo: One party acting alone to net trades, which will have no effect on any other party<\/li>\n<li>Duo: Two parties netting trades between themselves<\/li>\n<li>Multi: Many parties netting trades<\/li>\n<\/ul>\n<p>Later in 2014 some additional options come along which start moving beyond simpler mechanical netting of largely identical trades:<\/p>\n<ul>\n<li>Future cashflow netting: looking at the forward cashflow schedule of trades to find offsetting and matching settlement schedules<\/li>\n<li>Blended-rate compression: combining trades with similar or identical settlement schedules but with different rates on the trade itself (i.e. the fixed leg rate)<\/li>\n<li>Unlinked trades: Refer to the PDF<\/li>\n<\/ul>\n<p>All these are in addition to the TriOptima service which the industry uses. The source is this <a href=\"http:\/\/www.lch.co.uk\/media_centre\/press_releases\/2014-03-10.asp\" target=\"_blank\" rel=\"noopener nofollow\">announcement about multi-lateral compression<\/a>.<\/p>\n<p>In terms of innovation and competition in Clearing &#8211; does anyone know if any other CCP has comparable offerings? This moves SwapClear ahead from a service point of view, but interesting to note that the net risk represented by these trades and I assume the corresponding Initial Margin amount will remain more or less unchanged, I think. Anyone with a Risk background want to comment?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are many ways to reduce a portfolio and simply it for operational and economic purposes<\/p>\n","protected":false},"author":1,"featured_media":15324,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2862,2865],"tags":[3157,3550,3551],"acf":[],"_links":{"self":[{"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/posts\/15325"}],"collection":[{"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/comments?post=15325"}],"version-history":[{"count":0,"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/posts\/15325\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theotcspace.com\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/media?parent=15325"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/categories?post=15325"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/tags?post=15325"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}