LONDON, 1 December 2021 – OSTTRA’s TriOptima, a leading infrastructure service that helps to lower costs and mitigate risk in OTC derivatives markets, has announced that it successfully powered the inaugural compression of listed Nikkei 225 options at Osaka Exchange (OSE), part of Japan Exchange Group.
The OSE compression service powered by TriOptima, will enable OSE members to reduce their open positions and lower the capital costs of index options. Typically, positions are netted against each other multilaterally, allowing each market participant to reduce their position. The move, further extends TriOptima’s optimisation expertise in the asset class, supporting an ongoing industry wide push to reduce costs when trading derivatives.
“We have been collaborating with TriOptima to provide a comprehensive compression service for our benchmark equity index derivatives. This is the solution to client demand to optimise their outstanding positions and make capital work more efficiently,” said Tagaya Akira, Executive Officer with responsibility for market planning and comprehensive exchange development at OSE.
“Underpinning compression services for one of the most liquid benchmark index options worldwide is testament to the strength in this asset class. We expect the service to provide significant benefits, especially as market participation gathers pace over the coming months,” added Philip Junod, Senior Director, triReduce and triBalance Business Management.