OSTTRA Gains Regulatory Exemptions for Portfolio Rebalancing with Vanilla Swaps

OSTTRA has secured critical regulatory exemptions from ESMA and the UK's FCA, allowing its triBalance service to use vanilla swaps for portfolio rebalancing. The EU clearing exemption, confirmed on 16 June 2025, positions OSTTRA as the sole approved provider for post-trade risk reduction services in the region.

The FCA's parallel exemption from Derivatives Trading Obligations and transparency reporting requirements took effect 30 June 2025, leveling the playing field for UK-based users after EU participants gained similar advantages under MiFIR 3 in 2024.

This regulatory shift replaces the need for complex swaptions with more liquid vanilla instruments, potentially increasing adoption of risk reduction strategies. Market participants now access a streamlined process for optimizing derivative exposures without mandatory clearing constraints.