TriReduce, the interest rate swaps software system, has collapsed another $1 trillion (€857bn) worth of interest rate swap contracts, bringing the total amount of volume terminated so far close to $3 trillion.

TriReduce, which was developed by Sweden's TriOptima, allows banks to collapse their swap portfolios, releasing them from capital and credit charges and eliminating costs. The service is deemed immensely valuable for the credit-intensive interest rate swap markets, as it effectively frees up valuable capital for participating banks. A single run of the system can effectively terminate thousands of interest rate swaps, reducing each bank's portfolio of existing swaps, and liberating credit lines.