\ Solutions for Benchmark Transition
Transition to risk-free rates
OSTTRA provides a suite of services which helps industry participants navigate the change from legacy interest rate benchmarks to new alternative risk-free rates (RFRs)
Our services have been at the centre of this transformation in the derivative markets.
OSTTRA triReduce Benchmark Conversion provides proactive and iterative compression and conversion of legacy benchmark exposure. Conversion occurs onto market standard alternative RFRs ahead of CCP conversion, index cessation and fallback implementation.
Through a regular schedule of exercises run across all major OTC interest rates CCPs, participants can achieve key milestones towards their benchmark transition goals by multilaterally managing down their legacy exposures and adopting RFR benchmarks.
In addition to compression, the platform provides highly efficient and low-touch multilateral backloading exercises that allow backloading of trades on legacy benchmarks into a clearing or settlement venue, leveraging efficiencies and processes such as CCP conversion event.
Trade Lifecycle Processing
OSTTRA MarkitWire provides critical post-trade infrastructure which helps firms manage the shift to new risk free rates (RFR) in few different capacities. Firms can use MarkitWire to:
Achieve full legal confirmation for new transactions and life-cycle events which reference new alternative RFRs
Manage the transition of non-cleared IBOR derivative transactions using either OSTTRA MarkitWire’s amendment or termination and replace feature
It is essential to maintain a proactive cashflow reconciliation and in a forward-looking benchmark world, the next coupon payment is known well in advance of its scheduled payment. Falling back to a compounded-in-arrears rate, on the other hand, leaves a very short amount of time to identify booking discrepancies that could lead to payment disputes and fails.
Our unparalleled network, powered by OSTTRA triResolve, is uniquely positioned to assist market participants, proactively detect and resolve potential payment disputes. OSTTRA triResolve sees over 90% of all bilateral OTC derivatives across more than 2,000 groups, ensuring all your counterparties are in one place.
Counterparty Risk optimisation
OSTTRA triBalance participants now receive their risk rebalancing trades referencing RFR benchmarks in all relevant currencies. Ensuring margin & capital optimisation techniques mirror the transactions and exposures they are intended to optimise.
OSTTRA Professional Services
We have developed and delivered effective, streamlined and flexible services to help customers prepare for CCP transition events.
Production Simulation Trades in UAT
Replicate your trades in OSTTRA MarkitWire UAT so you can validate and use the data for CCP transition dress rehearsals, enabling the early identification and diagnosis of issues ahead of the transition.
CCP Simulation Solution
Due to the finite number of CCP dress rehearsals available in UAT and tight internal timelines, customers can face difficulties and challenges testing and validating their OSTTRA MarkitWire development and in assessing downstream reporting impact for CCP transition events. Achieve technical sign-off prior to such events with OSTTRA acting as the CCP and running simulated CCP transition events on your behalf.
Basis Risk Optimisation
OSTTRA Reset will continue to offer our portfolio matching service in products impacted by IBOR transition up to the relevant cessation date. As primary market liquidity decreases, with our broad pool of participants, our basis risk optimisation service provides the most effective way to hedge fixing risk.
We continue to monitor market developments in IBOR transitioned currencies, and already offer a service to manage short end risk in GBP. This will be extended to EUR and USD in Q1 2023.
Business manager, triReduce and triBalance
To find out more about our end-to-end post-trade solutions, please share your details with a short message and we will get in touch with you soon.
A member of our team will contact you.