Federal Register #600-43

SEC Solicitation: TriOptima AB Exemption for Risk Reduction Services in Derivatives and Repo Products

This SEC opportunity concerns TriOptima AB's application for exemption from clearing agency registration to provide risk reduction services for financial institutions. - Government Buyer: - Securities and Exchange Commission (SEC), Division of Trading and Markets - OEMs and Vendors: - TriOptima AB (Stockholm, Sweden; owned by Orion ELP LP, controlled by KKR) - Services Requested: - triReduce Portfolio Compression Service - Multilateral early termination of cleared and uncleared OTC derivatives - Covers interest rate swaps, cross currency swaps, inflation swaps, credit default swaps, FX forwards - triBalance Portfolio Rebalancing Service - Multilateral rebalancing of counterparty risk exposures in OTC derivatives portfolios - Planned expansion to repurchase and reverse repurchase agreements (Repo Products), including U.S. Treasury securities - Unique/Notable Requirements: - TriOptima does not hold customer assets or manage collateral - Exemption request includes conditions for periodic disclosures and SEC inspections - Expansion of services to repo products expected to be minimal until at least June 2027 - Focus is on regulatory exemption for financial risk management services, not product procurement - No specific product part numbers or purchase quantities are requested; the notice is for regulatory exemption.

Description

TriOptima AB has filed an application seeking an exemption from registration as a clearing agency under Section 17A of the Securities Exchange Act of 1934. The exemption request pertains to its post-trade risk reduction services for security-based swaps offered through its triReduce and triBalance services, and an expansion to include repurchase and reverse repurchase agreements involving various securities, including U.S. Treasury securities. TriOptima provides these services to financial institutions to reduce risks in their derivative portfolios, including multilateral portfolio compression and rebalancing services. The Securities and Exchange Commission is soliciting public comments on this application to determine whether to grant the exemption.

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