SlideShare une entreprise Scribd logo
1  sur  18
Télécharger pour lire hors ligne
Diana Higgins Bilateral Compression
2
• 


• 


• 




     3
• 
• 

• 
• 
• 
• 
• 
• 
     • 

     • 
     • 



          4
Prop%trading:%Analyze%compression%twice%per%year%%
      Opera7onal:%repor7ng%requirements%


  Clearing%               OTC%Threshold%



 Margin       %    No7onal    %       Credit   %
                                                   5
6
Before                                             After
                 “Equivalent” all or within
                 “Tolerances”:
                      P/L: unrealized is
                      cashed in or out

                     Credit exposure

                     Overall volume / zero

                     Volume by time buckets

                     Dates: Delivery, Start,
                     End, Strike, Payment      Less trades “Buys”
                                               Less trades “Sells”:
Thousands of         Underlying physical /
trades “Buys”                                   LESS NOTIONAL
                     financial: ie NBP Gas
Thousands of                                     LESS USE OF
trades “Sells”                                     THE EMIR
                                                 THRESHOLD!!! 7
Termina7on%
                                                      Nego7a7on%
                                          Valua7on%
                              Trade%
                              matching%
              Agree%with%
              counterparty%
Agree%
Internally%




                                                                                 8
Front%Office%



              Market%Risk%                                          Credit%Risk%




Opera7ons%
 (physical%                                                                         Legal%
 delivery)%
                                           My%
                                         Company%


                                                                             Informa7on%
      Finance%
                                                                             Technology%




                             Backoffice%                  Treasury%

                                                                                             9
10
• 

• 
     – 



• 
     – 


          11
Bilateral%


                  %                                       %
        %                    %                   %                  %


%                                    %   %               My%                 %
                Cpty.%                                   Co.%

    %                            %           %                          %

            %            %                           %          %



                                                                        12
%
                                                                                                                                     %
                                                                                                                                                %
                                                                                                                                                                                   Mul7lateral%
                                        %                                                              %                                                        %
                        %                                   %                                                                      Cpty.%

                                                                                                           %                                            %
            %                                                       %
                                    Cpty.%
                                                                                                                               %            %

                %                                               %

                                %               %                                    %“Place”,%
                                                                                       Rules,%                                                                               %
                                                                                      Engine%
                                                                                                                                                                    %                  %

                                                                        Same%
                                                                        Day,%                                                                       %                       My%                %
                                                                        Time%                                                                                               Co.%
                            %
        %                                   %                                               Mul7lateral%                                                    %                              %
                                                                                             service%
                                                                                                                                                                        %          %
%                                                       %
                        Cpty.%

    %                                               %
                                                                                            %
                    %               %                                            %                             %


                                                                         %                                                 %
                                                                                          Cpty.%

                                                                             %                                         %

                                                                                      %            %                                                                                               13
Step              Bilateral        TriReduce®             Ovovis®
1-Agree terms with
Counterparty
                                              ☕                    ☕
                                        Standard terms       Standard terms
2- Agree terms
within my Company

3- Trade matching
                                              ☕                    ☕
                                        Engine matches     Triangles, no match
                                                                 required
4- Valuation
                                                                   ☕
                                          MtM as given    Engine: price, volume,
                                                                  value
5- Negotiation
                                              ☕                    ☕
                     Win-Lose, (W-W?)       Win-Win             P/L neutral
6- Documentation
                                              ☕                    ☕
                                            Standard     Standard: adds trade to
                                                         simplify, no termination
6- Termination
                                              ☕                               14
                                            Standard
Benefits'/'Risks'               Bilateral'              TriReduce®'                Ovovis®'
1S%EMIR%Benefit%
                                                                                       %
                     “Flexible”%tolerances,%choose%             %vs%    Mix     %(EMIR%value%up%if%
                         who,%what%                      Mul7ple%             not%terminated)%
2SPar7es%in%/%out%

3S%Confiden7ality%

4S%Benefit%Margin%
Credit,%Opera7on%

5S%Profits%or%
Losses%
                              WinSLose%                  WinSWin%       Neutral,%then%Bilateral%
6S%Resources%

7S%Time%to%
termina7on%
                     Agree,%Nego7a7on%Engine?%           2S6%days%             2S3Sdays%%
(not%working%
                                 %                           %             Plus%Nego7a7on%
hours)%
                          Plus%opera7ons%             Plus%opera7ons%      Plus%opera7ons%
8S%Cost%                     Internal%plus%           Cash%out%plus%           Cash%out%plus%
                                Internal%               Internal%                Internal% 15
• 

• 
     – 
     – 

• 
     – 


          16
17
•    Disclaimer: To the extent permitted by law, neither Crediten Ltd nor its presenters will be
     liable by reason of breach of contract, negligence or otherwise for any loss or consequential
     loss occasioned to any person acting omitting to act or refraining from acting in reliance
     upon the course material or presentation of the course or, except to the extent that any such
     loss does not exceed the price of the course, arising from or connected with any error or
     omission in the course material or presentation of the course. Consequential loss shall be
     deemed to include, but is not limited to, any loss of profits or anticipated profits, damage to
     reputation or goodwill, loss of business or anticipated business, damages, costs, expenses
     incurred or payable to any third party or any other indirect or consequential losses. Except
     as expressly and specifically provided in this agreement: you assume sole responsibility for
     results obtained from the use of the training and for conclusions drawn from such use.
     Crediten Ltd shall have no liability for any damage caused by errors or omissions in any
     information, instructions or scripts provided to Crediten Ltd by you in connection with the
     training, or any actions taken by Crediten Ltd at your direction; and all warranties,
     conditions and other terms implied by statute or common law are, to the fullest extent
     permitted by law, excluded from this agreement.
•    Nothing in this agreement excludes or limits the liability of Crediten Ltd for: death or
     personal injury caused by the Crediten Ltd's negligence; fraud or fraudulent
     misrepresentation; or any other liability which cannot lawfully be excluded or limited.

•    Intellectual property rights: all Intellectual Property Rights and all other rights in the
     training materials shall be owned by Crediten Ltd.
•    CREDITEN LIMITED COPYRIGHT 2012


                                                                                                       18

Contenu connexe

Similaire à Diana Higgins Bilateral Compression

EchoSign Case Study: How Adobe Cut 2 Weeks From its Contracting Process
EchoSign Case Study:  How Adobe Cut 2 Weeks From its Contracting ProcessEchoSign Case Study:  How Adobe Cut 2 Weeks From its Contracting Process
EchoSign Case Study: How Adobe Cut 2 Weeks From its Contracting ProcessJason M. Lemkin
 
Presentation for Salomon Smith Barney Latin Equity Conference
Presentation for Salomon Smith Barney Latin Equity ConferencePresentation for Salomon Smith Barney Latin Equity Conference
Presentation for Salomon Smith Barney Latin Equity ConferenceEmbraer RI
 
2002* ApresentaçãO Realizada Na ConferêNcia De AméRica Latina Do Salomon Smit...
2002* ApresentaçãO Realizada Na ConferêNcia De AméRica Latina Do Salomon Smit...2002* ApresentaçãO Realizada Na ConferêNcia De AméRica Latina Do Salomon Smit...
2002* ApresentaçãO Realizada Na ConferêNcia De AméRica Latina Do Salomon Smit...Embraer RI
 
Wisdom of crowds business intelligence market study findings overview
Wisdom of crowds business intelligence market study findings overviewWisdom of crowds business intelligence market study findings overview
Wisdom of crowds business intelligence market study findings overviewYellowfin
 
Wickes summary
Wickes summaryWickes summary
Wickes summaryJCDecauxUK
 
Recession power session how the tough get going
Recession power session   how the tough get goingRecession power session   how the tough get going
Recession power session how the tough get goingRalph Paglia
 
Recession power session how the tough get going
Recession power session   how the tough get goingRecession power session   how the tough get going
Recession power session how the tough get goingSocial Media Marketing
 
2005 - 5th Us Analyst Investors Meeting Commercial Airline Market
2005 - 5th Us Analyst Investors Meeting   Commercial Airline Market2005 - 5th Us Analyst Investors Meeting   Commercial Airline Market
2005 - 5th Us Analyst Investors Meeting Commercial Airline MarketEmbraer RI
 
Small Business Pulse Report
Small Business Pulse Report Small Business Pulse Report
Small Business Pulse Report Constant Contact
 
Itam Consulting Group Aug 2009
Itam Consulting Group Aug 2009Itam Consulting Group Aug 2009
Itam Consulting Group Aug 2009eashford
 
Protein molecule interactions - Pymol
Protein molecule interactions - PymolProtein molecule interactions - Pymol
Protein molecule interactions - Pymolc_rickman
 
Lp Survey Findings 2009
Lp Survey Findings 2009Lp Survey Findings 2009
Lp Survey Findings 2009Ted Rogers
 
Using Social Media in College Access Campaigns
Using Social Media in College Access CampaignsUsing Social Media in College Access Campaigns
Using Social Media in College Access CampaignsJess Krywosa
 
csx 2005_Deutsche_BK_FINAL-REF21832
csx  2005_Deutsche_BK_FINAL-REF21832csx  2005_Deutsche_BK_FINAL-REF21832
csx 2005_Deutsche_BK_FINAL-REF21832finance27
 
csx 2005_Deutsche_BK_FINAL-REF21832
csx  2005_Deutsche_BK_FINAL-REF21832csx  2005_Deutsche_BK_FINAL-REF21832
csx 2005_Deutsche_BK_FINAL-REF21832finance27
 

Similaire à Diana Higgins Bilateral Compression (20)

Chapel Hill 2020: Chamber Survey Results
Chapel Hill 2020: Chamber Survey ResultsChapel Hill 2020: Chamber Survey Results
Chapel Hill 2020: Chamber Survey Results
 
FY 2010 IFRS Results
FY 2010 IFRS ResultsFY 2010 IFRS Results
FY 2010 IFRS Results
 
EchoSign Case Study: How Adobe Cut 2 Weeks From its Contracting Process
EchoSign Case Study:  How Adobe Cut 2 Weeks From its Contracting ProcessEchoSign Case Study:  How Adobe Cut 2 Weeks From its Contracting Process
EchoSign Case Study: How Adobe Cut 2 Weeks From its Contracting Process
 
2013 SMB Ad Spending Preview
2013 SMB Ad Spending Preview2013 SMB Ad Spending Preview
2013 SMB Ad Spending Preview
 
Presentation for Salomon Smith Barney Latin Equity Conference
Presentation for Salomon Smith Barney Latin Equity ConferencePresentation for Salomon Smith Barney Latin Equity Conference
Presentation for Salomon Smith Barney Latin Equity Conference
 
2002* ApresentaçãO Realizada Na ConferêNcia De AméRica Latina Do Salomon Smit...
2002* ApresentaçãO Realizada Na ConferêNcia De AméRica Latina Do Salomon Smit...2002* ApresentaçãO Realizada Na ConferêNcia De AméRica Latina Do Salomon Smit...
2002* ApresentaçãO Realizada Na ConferêNcia De AméRica Latina Do Salomon Smit...
 
Wisdom of crowds business intelligence market study findings overview
Wisdom of crowds business intelligence market study findings overviewWisdom of crowds business intelligence market study findings overview
Wisdom of crowds business intelligence market study findings overview
 
Wickes summary
Wickes summaryWickes summary
Wickes summary
 
Recession power session how the tough get going
Recession power session   how the tough get goingRecession power session   how the tough get going
Recession power session how the tough get going
 
Recession power session how the tough get going
Recession power session   how the tough get goingRecession power session   how the tough get going
Recession power session how the tough get going
 
2005 - 5th Us Analyst Investors Meeting Commercial Airline Market
2005 - 5th Us Analyst Investors Meeting   Commercial Airline Market2005 - 5th Us Analyst Investors Meeting   Commercial Airline Market
2005 - 5th Us Analyst Investors Meeting Commercial Airline Market
 
Small Business Pulse Report
Small Business Pulse Report Small Business Pulse Report
Small Business Pulse Report
 
Itam Consulting Group Aug 2009
Itam Consulting Group Aug 2009Itam Consulting Group Aug 2009
Itam Consulting Group Aug 2009
 
Protein molecule interactions - Pymol
Protein molecule interactions - PymolProtein molecule interactions - Pymol
Protein molecule interactions - Pymol
 
Lp Survey Findings 2009
Lp Survey Findings 2009Lp Survey Findings 2009
Lp Survey Findings 2009
 
Using Social Media in College Access Campaigns
Using Social Media in College Access CampaignsUsing Social Media in College Access Campaigns
Using Social Media in College Access Campaigns
 
1Q09 Presentation
1Q09 Presentation1Q09 Presentation
1Q09 Presentation
 
csx 2005_Deutsche_BK_FINAL-REF21832
csx  2005_Deutsche_BK_FINAL-REF21832csx  2005_Deutsche_BK_FINAL-REF21832
csx 2005_Deutsche_BK_FINAL-REF21832
 
csx 2005_Deutsche_BK_FINAL-REF21832
csx  2005_Deutsche_BK_FINAL-REF21832csx  2005_Deutsche_BK_FINAL-REF21832
csx 2005_Deutsche_BK_FINAL-REF21832
 
Patron- Driven Selection of eBooks - Safley
Patron- Driven Selection of eBooks - SafleyPatron- Driven Selection of eBooks - Safley
Patron- Driven Selection of eBooks - Safley
 

Dernier

ARTICULAR DISC OF TEMPOROMANDIBULAR JOINT
ARTICULAR DISC OF TEMPOROMANDIBULAR JOINTARTICULAR DISC OF TEMPOROMANDIBULAR JOINT
ARTICULAR DISC OF TEMPOROMANDIBULAR JOINTDR. SNEHA NAIR
 
HED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdfHED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdfMohonDas
 
Protein Structure - threading Protein modelling pptx
Protein Structure - threading Protein modelling pptxProtein Structure - threading Protein modelling pptx
Protein Structure - threading Protein modelling pptxvidhisharma994099
 
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRADUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRATanmoy Mishra
 
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdfP4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdfYu Kanazawa / Osaka University
 
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptx
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptxSOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptx
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptxSyedNadeemGillANi
 
5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...CaraSkikne1
 
How to Create a Toggle Button in Odoo 17
How to Create a Toggle Button in Odoo 17How to Create a Toggle Button in Odoo 17
How to Create a Toggle Button in Odoo 17Celine George
 
EBUS5423 Data Analytics and Reporting Bl
EBUS5423 Data Analytics and Reporting BlEBUS5423 Data Analytics and Reporting Bl
EBUS5423 Data Analytics and Reporting BlDr. Bruce A. Johnson
 
How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17Celine George
 
How to Send Emails From Odoo 17 Using Code
How to Send Emails From Odoo 17 Using CodeHow to Send Emails From Odoo 17 Using Code
How to Send Emails From Odoo 17 Using CodeCeline George
 
How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17Celine George
 
Department of Health Compounder Question ‍Solution 2022.pdf
Department of Health Compounder Question ‍Solution 2022.pdfDepartment of Health Compounder Question ‍Solution 2022.pdf
Department of Health Compounder Question ‍Solution 2022.pdfMohonDas
 
Riddhi Kevadiya. WILLIAM SHAKESPEARE....
Riddhi Kevadiya. WILLIAM SHAKESPEARE....Riddhi Kevadiya. WILLIAM SHAKESPEARE....
Riddhi Kevadiya. WILLIAM SHAKESPEARE....Riddhi Kevadiya
 
What is the Future of QuickBooks DeskTop?
What is the Future of QuickBooks DeskTop?What is the Future of QuickBooks DeskTop?
What is the Future of QuickBooks DeskTop?TechSoup
 
How to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesHow to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesCeline George
 
Quality Assurance_GOOD LABORATORY PRACTICE
Quality Assurance_GOOD LABORATORY PRACTICEQuality Assurance_GOOD LABORATORY PRACTICE
Quality Assurance_GOOD LABORATORY PRACTICESayali Powar
 

Dernier (20)

ARTICULAR DISC OF TEMPOROMANDIBULAR JOINT
ARTICULAR DISC OF TEMPOROMANDIBULAR JOINTARTICULAR DISC OF TEMPOROMANDIBULAR JOINT
ARTICULAR DISC OF TEMPOROMANDIBULAR JOINT
 
HED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdfHED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdf
 
Protein Structure - threading Protein modelling pptx
Protein Structure - threading Protein modelling pptxProtein Structure - threading Protein modelling pptx
Protein Structure - threading Protein modelling pptx
 
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRADUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
 
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdfP4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
 
Finals of Kant get Marx 2.0 : a general politics quiz
Finals of Kant get Marx 2.0 : a general politics quizFinals of Kant get Marx 2.0 : a general politics quiz
Finals of Kant get Marx 2.0 : a general politics quiz
 
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptx
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptxSOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptx
SOLIDE WASTE in Cameroon,,,,,,,,,,,,,,,,,,,,,,,,,,,.pptx
 
5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...
 
How to Create a Toggle Button in Odoo 17
How to Create a Toggle Button in Odoo 17How to Create a Toggle Button in Odoo 17
How to Create a Toggle Button in Odoo 17
 
EBUS5423 Data Analytics and Reporting Bl
EBUS5423 Data Analytics and Reporting BlEBUS5423 Data Analytics and Reporting Bl
EBUS5423 Data Analytics and Reporting Bl
 
How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17
 
How to Send Emails From Odoo 17 Using Code
How to Send Emails From Odoo 17 Using CodeHow to Send Emails From Odoo 17 Using Code
How to Send Emails From Odoo 17 Using Code
 
Prelims of Kant get Marx 2.0: a general politics quiz
Prelims of Kant get Marx 2.0: a general politics quizPrelims of Kant get Marx 2.0: a general politics quiz
Prelims of Kant get Marx 2.0: a general politics quiz
 
How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17
 
Department of Health Compounder Question ‍Solution 2022.pdf
Department of Health Compounder Question ‍Solution 2022.pdfDepartment of Health Compounder Question ‍Solution 2022.pdf
Department of Health Compounder Question ‍Solution 2022.pdf
 
Riddhi Kevadiya. WILLIAM SHAKESPEARE....
Riddhi Kevadiya. WILLIAM SHAKESPEARE....Riddhi Kevadiya. WILLIAM SHAKESPEARE....
Riddhi Kevadiya. WILLIAM SHAKESPEARE....
 
What is the Future of QuickBooks DeskTop?
What is the Future of QuickBooks DeskTop?What is the Future of QuickBooks DeskTop?
What is the Future of QuickBooks DeskTop?
 
How to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesHow to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 Sales
 
March 2024 Directors Meeting, Division of Student Affairs and Academic Support
March 2024 Directors Meeting, Division of Student Affairs and Academic SupportMarch 2024 Directors Meeting, Division of Student Affairs and Academic Support
March 2024 Directors Meeting, Division of Student Affairs and Academic Support
 
Quality Assurance_GOOD LABORATORY PRACTICE
Quality Assurance_GOOD LABORATORY PRACTICEQuality Assurance_GOOD LABORATORY PRACTICE
Quality Assurance_GOOD LABORATORY PRACTICE
 

Diana Higgins Bilateral Compression

  • 2. 2
  • 5. Prop%trading:%Analyze%compression%twice%per%year%% Opera7onal:%repor7ng%requirements% Clearing% OTC%Threshold% Margin % No7onal % Credit % 5
  • 6. 6
  • 7. Before After “Equivalent” all or within “Tolerances”: P/L: unrealized is cashed in or out Credit exposure Overall volume / zero Volume by time buckets Dates: Delivery, Start, End, Strike, Payment Less trades “Buys” Less trades “Sells”: Thousands of Underlying physical / trades “Buys” LESS NOTIONAL financial: ie NBP Gas Thousands of LESS USE OF trades “Sells” THE EMIR THRESHOLD!!! 7
  • 8. Termina7on% Nego7a7on% Valua7on% Trade% matching% Agree%with% counterparty% Agree% Internally% 8
  • 9. Front%Office% Market%Risk% Credit%Risk% Opera7ons% (physical% Legal% delivery)% My% Company% Informa7on% Finance% Technology% Backoffice% Treasury% 9
  • 10. 10
  • 11. •  •  –  •  –  11
  • 12. Bilateral% % % % % % % % % % My% % Cpty.% Co.% % % % % % % % % 12
  • 13. % % % Mul7lateral% % % % % % Cpty.% % % % % Cpty.% % % % % % % %“Place”,% Rules,% % Engine% % % Same% Day,% % My% % Time% Co.% % % % Mul7lateral% % % service% % % % % Cpty.% % % % % % % % % % Cpty.% % % % % 13
  • 14. Step Bilateral TriReduce® Ovovis® 1-Agree terms with Counterparty ☕ ☕ Standard terms Standard terms 2- Agree terms within my Company 3- Trade matching ☕ ☕ Engine matches Triangles, no match required 4- Valuation ☕ MtM as given Engine: price, volume, value 5- Negotiation ☕ ☕ Win-Lose, (W-W?) Win-Win P/L neutral 6- Documentation ☕ ☕ Standard Standard: adds trade to simplify, no termination 6- Termination ☕ 14 Standard
  • 15. Benefits'/'Risks' Bilateral' TriReduce®' Ovovis®' 1S%EMIR%Benefit% % “Flexible”%tolerances,%choose% %vs% Mix %(EMIR%value%up%if% who,%what% Mul7ple% not%terminated)% 2SPar7es%in%/%out% 3S%Confiden7ality% 4S%Benefit%Margin% Credit,%Opera7on% 5S%Profits%or% Losses% WinSLose% WinSWin% Neutral,%then%Bilateral% 6S%Resources% 7S%Time%to% termina7on% Agree,%Nego7a7on%Engine?% 2S6%days% 2S3Sdays%% (not%working% % % Plus%Nego7a7on% hours)% Plus%opera7ons% Plus%opera7ons% Plus%opera7ons% 8S%Cost% Internal%plus% Cash%out%plus% Cash%out%plus% Internal% Internal% Internal% 15
  • 16. •  •  –  –  •  –  16
  • 17. 17
  • 18. •  Disclaimer: To the extent permitted by law, neither Crediten Ltd nor its presenters will be liable by reason of breach of contract, negligence or otherwise for any loss or consequential loss occasioned to any person acting omitting to act or refraining from acting in reliance upon the course material or presentation of the course or, except to the extent that any such loss does not exceed the price of the course, arising from or connected with any error or omission in the course material or presentation of the course. Consequential loss shall be deemed to include, but is not limited to, any loss of profits or anticipated profits, damage to reputation or goodwill, loss of business or anticipated business, damages, costs, expenses incurred or payable to any third party or any other indirect or consequential losses. Except as expressly and specifically provided in this agreement: you assume sole responsibility for results obtained from the use of the training and for conclusions drawn from such use. Crediten Ltd shall have no liability for any damage caused by errors or omissions in any information, instructions or scripts provided to Crediten Ltd by you in connection with the training, or any actions taken by Crediten Ltd at your direction; and all warranties, conditions and other terms implied by statute or common law are, to the fullest extent permitted by law, excluded from this agreement. •  Nothing in this agreement excludes or limits the liability of Crediten Ltd for: death or personal injury caused by the Crediten Ltd's negligence; fraud or fraudulent misrepresentation; or any other liability which cannot lawfully be excluded or limited. •  Intellectual property rights: all Intellectual Property Rights and all other rights in the training materials shall be owned by Crediten Ltd. •  CREDITEN LIMITED COPYRIGHT 2012 18