CME adds euro compression offering

摘要

Cme Group executed its first compression cycle for euro-denominated interest rate swaps last week. The move came just a week after US and European regulators ostensibly cleared the way for European participants to continue using US clearinghouses, and vice versa, after an ongoing disagreement that had put such activity into question. The firm eliminated US$508bn notional using TriOptima's triReduce service across 26,547 line items. Compression cycles bring together swap dealers into a central pool to reconcile and tear-up superfluous trades in an effort to drive down outstanding notionals and clear up precious balance sheet space for dealers.