OSTTRA triReduce completes its first compression run
17 September 2025 UK and Hong Kong
Image: leungchopan/stock.adobe.com
Global post-trade solutions provider OSTTRA has announced that its portfolio compression service, OSTTRA triReduce, has completed its first compression run for USD/CNH cross currency swaps (CCS), cleared through HKEX鈥檚 OTC Clear.
This exercise was conducted with HKEX鈥檚 OTC Clear on 28 August with five financial institutions, including Bank of China (Hong Kong) and Cr茅dit Agricole CIB.
A total of US$5.8 billion in notional value was compressed in this pilot run, demonstrating the potential to deliver substantial capital efficiencies and risk reduction to market participants.
The outstanding volume of USD/CNH CCS cleared on HKEX鈥檚 OTC Clear 鈥� the only CCP clearing this contract 鈥� was US$255.2 billion in July 2025.
OSTTRA triReduce compression runs offer market participants a way to efficiently reduce costs and risks associated with this heavily traded contract that is consistently growing in volume.
According to the firm, the collaboration between OSTTRA and HKEX comes amid increasing demand from market participants for compression services in Asia.
OSTTRA has seen a significant increase in compression volume in APAC currencies, with compressed notional value more than doubling in the first six months of 2025 compared to the same period last year.
The notional value of APAC currency contracts closed in 2025 (to date) surpassed US$33.1 trillion, more than double the amount seen for these currencies across the whole of 2023.
Building on the successful first run, OSTTRA intends to conduct another compression run for the USD/CNH pair with a larger group of market participants in the coming months on HKEX鈥檚 OTC Clear.
Commenting on the completion of the compression run, Erik Petri, head of optimisation, at OSTTRA states: 鈥淭he addition of cleared USD/CNH CCS to our compression service, as well as HKEX鈥檚 OTC Clear as a compression venue, further establishes OSTTRA as the leading provider of compression in the Asia Pacific market.
鈥淎s CNH activity increases in the region, this service will provide valuable capital and operational efficiencies for banks needing to manage risk in this fast-growing currency pair.鈥�
Zhang Chengdong, head of trading, deputy general manager of global markets, Bank of China (Hong Kong), adds: 鈥淭he compression for USD/CNH cross currency swaps further enhances our capital and operational efficiency鈥�.
John Luk, head of emerging markets trading for Greater China, Cr茅dit Agricole CIB, further observes: 鈥淎s an active player in HKEX鈥檚 OTC Clear, we are pleased that the inaugural cleared USD/CNH CCS 鈥� a key client offering of our bank 鈥� compression service has been introduced to the local market鈥�.
This exercise was conducted with HKEX鈥檚 OTC Clear on 28 August with five financial institutions, including Bank of China (Hong Kong) and Cr茅dit Agricole CIB.
A total of US$5.8 billion in notional value was compressed in this pilot run, demonstrating the potential to deliver substantial capital efficiencies and risk reduction to market participants.
The outstanding volume of USD/CNH CCS cleared on HKEX鈥檚 OTC Clear 鈥� the only CCP clearing this contract 鈥� was US$255.2 billion in July 2025.
OSTTRA triReduce compression runs offer market participants a way to efficiently reduce costs and risks associated with this heavily traded contract that is consistently growing in volume.
According to the firm, the collaboration between OSTTRA and HKEX comes amid increasing demand from market participants for compression services in Asia.
OSTTRA has seen a significant increase in compression volume in APAC currencies, with compressed notional value more than doubling in the first six months of 2025 compared to the same period last year.
The notional value of APAC currency contracts closed in 2025 (to date) surpassed US$33.1 trillion, more than double the amount seen for these currencies across the whole of 2023.
Building on the successful first run, OSTTRA intends to conduct another compression run for the USD/CNH pair with a larger group of market participants in the coming months on HKEX鈥檚 OTC Clear.
Commenting on the completion of the compression run, Erik Petri, head of optimisation, at OSTTRA states: 鈥淭he addition of cleared USD/CNH CCS to our compression service, as well as HKEX鈥檚 OTC Clear as a compression venue, further establishes OSTTRA as the leading provider of compression in the Asia Pacific market.
鈥淎s CNH activity increases in the region, this service will provide valuable capital and operational efficiencies for banks needing to manage risk in this fast-growing currency pair.鈥�
Zhang Chengdong, head of trading, deputy general manager of global markets, Bank of China (Hong Kong), adds: 鈥淭he compression for USD/CNH cross currency swaps further enhances our capital and operational efficiency鈥�.
John Luk, head of emerging markets trading for Greater China, Cr茅dit Agricole CIB, further observes: 鈥淎s an active player in HKEX鈥檚 OTC Clear, we are pleased that the inaugural cleared USD/CNH CCS 鈥� a key client offering of our bank 鈥� compression service has been introduced to the local market鈥�.
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