|By Business Wire||
|October 29, 2012 07:00 PM EDT||
Calypso Technology Inc., the global capital markets platform provider, announced today that Japan Securities Clearing Corporation (JSCC), a member of the Tokyo Stock Exchange Group, has gone live with the Calypso system for its interest rate swaps (IRS) central counterparty (CCP) clearing service. Calypso is used for initial and variation margin calculations (using Yen OIS discounting), trade lifecycle processing and risk management. This clearing service is the first yen-denominated IRS clearing service in Asia Pacific.
Calypso is used by the majority of CCPs globally for clearing LIBOR interest rate swaps, credit derivatives and FX products, providing the core infrastructure for CCPs to provide clearing services for OTC derivatives as mandated by the G20. Calypso Technology is also working with the banks in Japan and other major financial markets to facilitate the reforms in the OTC markets.
Calypso Technology has been working with JSCC since 2010, when JSCC started working on CDS Index clearing, which successfully launched in 2011. JSCC selected Calypso Technology as it was the only supplier capable of supporting the complete OTC derivatives clearing in a single system.
According to Celent, a financial services research and consulting firm, Japan’s (OTC) derivatives market in 2011 recorded 5.1 million transactions. “We needed a system that could scale to the volumes of the OTC business in Japan,” stated Mr. Yasushi Suzuki, Managing Director, Japan Securities Clearing Corporation.
Mr. Suzuki added, “Calypso Technology’s involvement in the project and experience working with global CCPs was instrumental in enabling us to successfully meet the November 2012 Financial Instruments and Exchange Act (FIEA) deadline for OTC derivatives clearing. This milestone allows Japan to further improve the safety and transparency of the OTC market. The advent of OTC derivatives clearing is the first step in the structural reform of the OTC derivatives market.”
Charles Marston, Chairman and CEO, Calypso Technology, commented, “JSCC has been an important and valued client for us in Japan, working with us in delivering OTC financial derivatives clearing services that meet regional and global requirements. We look forward to working with JSCC on future projects, and are delighted to be working with them on this landmark IRS clearing mandate."
About Calypso Technology, Inc.
Calypso Technology is a premier global capital markets platform provider, serving financial institutions of all types with a full range of integral cross-asset front-to-back office solutions for treasury and derivatives including trading, risk, processing, clearing, collateral, cash management, liquidity, accounting and reporting. The Calypso platform is steadily emerging as a global standard for capital markets businesses and serves as an ideal foundation for innovation and future growth.
Calypso Technology has over 130 clients in over 40 countries - including banks, central banks, sovereign funds, asset managers, insurers, hedge funds, prime brokers, exchanges, clearing houses, processing services and other service providers. Calypso Technology is committed to industry-renowned levels of customer service, research, development and innovation. The company has over 700 employees and 17 offices globally. “Calypso” is a registered trademark of Calypso Technology, Inc. in the United States, the European Union and other jurisdictions.
About Japan Securities Clearing Corporation
Japan Securities Clearing Corporation (JSCC) was established in July 2002 as the first cross-market clearing organization in the Japanese securities market by Tokyo Stock Exchange, Osaka Securities Exchange, Nagoya Stock Exchange, Sapporo Securities Exchange, Fukuoka Stock Exchange and Japan Securities Dealers Association. In January 2003, JSCC was licensed as the first clearing organization in Japan to conduct the Securities Obligation Assumption business (now called Financial Instruments Obligation Assumption business) under the Securities and Exchange Law (now called Financial Instruments and Exchange Act).
JSCC unified clearing functions provided by each market until 2003 and realized improvement in the service level for customers with robust and efficient operation. From the inception, JSCC has been putting utmost priority on our risk management system to ensure safety in clearing and settlement process for domestic and global investment communities.
As it is now, JSCC provides the clearing services for all cash transactions executed at any of the domestic stock exchanges and two PTSs (proprietary trading system) in Japan, as well as futures and options transactions executed at the Tokyo Stock Exchange, Inc.