Posted by Colin Lambert. Last updated: June 15, 2026
Osttra says its TriReduce service saw “significant” growth in cross-currency compression activity in May, with total notional compressed rising 52% higher than 12 months prior.
The firm says the growth comes against a backdrop of market volatility, shifting interest rate expectations and heightened geopolitical uncertainty, that has driven increased activity across derivatives markets more generally. In Q1 2026, Osttra says it processed a record 6.3 million contracts across its MarkitWire trade processing network, representing a 27% year-on-year increase. The network also processed 68,000 swaptions trades across 100 banks and 180 end-user clients, highlighting growing demand for sophisticated rates risk management tools, it adds.
The firm also says the growth reflects increasing adoption across the market, with more firms joining the TriReduce network. Year-to-date, cross-currency compression volumes have continued to accelerate, highlighting the growing importance of compression as a tool for reducing risk and capital consumption, Osttra says, adding that cross-currency compression enables market participants to eliminate redundant trades while maintaining the same economic exposures, reducing gross notional outstanding.
“Market participants are increasingly focused on finding efficiencies across their derivatives portfolios,” says Erik Petri, head of optimisation at Osttra. “The continued growth in cross-currency compression activity demonstrates the importance firms are placing on tighter balance sheet management. Against a backdrop of elevated market volatility and record derivatives processing volumes, compression has become an increasingly important tool for helping firms reduce capital consumption and operate more efficiently.
“We expect this trend to continue as institutions seek to operate more efficiently in an evolving regulatory and market landscape,” he adds.
