OSTTRA all set for cessation of Canada’s CDOR next month

OSTTRA is preparing for the transition to the new Canadian Overnight Repo Rate Average (CORRA) reference rate next month, in collaboration with MarkitWire and triReduce. The company has announced its proactive measures to ensure a smooth transition for market participants to the new reference rate.

• OSTTRA has conducted a series of trials with its MarkitWire platform, processing over 200,000 messages during dress rehearsals with major clearinghouses such as LCH and CME.
• The trials, which involved 40 customers, demonstrated OSTTRA’s readiness for the cessation of the Canadian Dollar Offered Rate (CDOR) next month.
• OSTTRA’s triReduce service also achieved a significant milestone in the first quarter, compressing CAD trades by over 70%, a new record.

OSTTRA is gearing up for the transition to the Canadian Overnight Repo Rate Average (CORRA) reference rate, demonstrating readiness through successful trials and record-breaking trade compression.

OSTTRA offers MarkitWire and triReduce ahead of CORRA

OSTTRA’s triReduce service simplifies portfolios by reducing notional exposures and line items for both cleared and non-cleared OTC derivative trades. The platform offers multilateral compression across a wide range of derivative products, empowering firms to mitigate risk and manage escalating balance sheet costs amidst growing resource constraints. Erik Petri, Head of Optimisation at OSTTRA, highlighted the importance of multilateral compression in post-trade as regulators push market participants to streamline their gross notional exposure.

OSTTRA launched FX PvP settlement powered by Baton

Earlier this month, OSTTRA launched a FX PvP (payment versus payment) settlement service powered by Baton Systems. The service aims to enhance the security and efficiency of FX settlements, a concern heightened by the transition to T+1 settlement for securities in North America starting May 28, 2024. Leveraging Baton Systems’ advanced distributed ledger technology, OSTTRA’s FX PvP settlement service is designed to mitigate settlement risk and optimize intraday funding, liquidity, and credit risk.

Conclusion

OSTTRA’s proactive measures to ensure a smooth transition to the new CORRA reference rate, coupled with its innovative solutions such as the FX PvP settlement service, demonstrate the company’s commitment to enhancing the structure of OTC markets. As the cessation of CDOR approaches, OSTTRA’s readiness and strategic initiatives provide a promising outlook for market participants.