TriOptima's euro rates swaps tear-up planned via the Net

The first major interest rate swaps tear-up planned through TriReduce – a system developed by Sweden’s TriOptima – will take place via the internet later in the year, TriOptima founder and director Derk Brouwer told RiskNews .

Brouwer said the sheer complexity of terminating swaps contracts between many large counterparties meant a manual system – as used during a small pilot run late last year (See: TriOptima sets sights on $25 trillion swap elimination) – was impossible. “In the pilot run, the maximum termination was a few hundred swaps and we could do that manually. With thousands of swaps it is not possible,” said Brouwer.

As a result, banks will need to send full details of swaps they are keen to terminate in

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