Calypso Technology offers OTC Clearing Service for Derivative Clearing Members

• Clearing Members can connect to multiple OTC Clearing Platforms
• Clearing Members can offer OTC Clearing services to their clients

San Francisco, October 27, 2010 — Calypso Technology, Inc., a global application software provider of an integrated trading, risk and processing platform to financial institutions and corporate treasuries, today announced the launch of its new OTC Client Clearing Service for derivative clearing members (DCM).

The latest product development builds on the success of the Calypso System as a clearing platform implemented by a number of clearing houses for interest rate derivatives (IRD) and credit derivatives (CDS) clearing. The company is now offering a solution for clearing members to clear and process OTC derivatives on behalf of their house and clients accounts, across multiple clearing houses.

The product is Calypso's response to the challenges that clearing members face in quickly adapting to the new central counterparty (CCP) infrastructure brought on by the global regulatory push for central clearing of all standard OTC derivative contracts. The Calypso OTC Clearing Service provides support for all trade lifecycle events of a centrally cleared transaction including:

• Connectivity to clearing houses for trades and EOD market data and balances
• Reconciliation tool for validating data provided by each clearing house
• Functions and methodology to call or replicate clearing house margins
• Tools to create clearing member specific, margining rules for client collateral requirements, as well as tools to back test the validity of these margins
• Full books and records functionality for OTC client clearing

“Our OTC clearing infrastructure for member firms dramatically reduces the time and cost required to start clearing client trades on multiple central clearing platforms, and provides the tools for clearing members to deliver value added services,” states Amir Khwaja, Director of Risk Management, Calypso Technology. Automated matching of DCM’s books with the different clearing houses enhances straight-through-processing and it eliminates manual intervention, thus enabling firms to focus on customer services. The ability to replicate clearing house margins and to perform what-if testing to identify the impact of margin on a trade prior to physical clearing allows clients to make more informed decisions about the choice of the clearing venue.

Additionally, the system provides full back-office services such as settlement and accounting, collateral management and custodian services as well as reporting.

“Calypso Technology has pioneered technology for trading and processing of OTC Derivatives for many years,” states Khwaja. “With this new solution, we remain at the forefront of business change by offering our customers a solution to not only provide clearing services for all OTC contracts, but the tools that will allow them to generate additional value for their clients.”

Calypso Technology Wins the Asia Risk Award for Technology Development of the Year

• Leading vendor receives global recognition for responsive product
• OTC derivatives clearing solution developed alongside major clearing houses and exchanges

San Francisco, October 26, 2010 — Calypso Technology, Inc., a global application software provider of an integrated trading, risk and processing platform to financial institutions and corporate treasuries, today announced it has won the Asia Risk Award for Technology Development of the Year with Calypso® Central Clearing, the firm’s market leading OTC derivatives clearing solution for clearing houses and exchanges. Following a lengthy and thorough interview process with clients and product developers, Calypso was selected by the publication for its innovative product and its capacity to respond quickly to new needs resulting from the regulatory changes.

In response to the challenges that market participants face in quickly adapting to the new central counterparty (CCP) infrastructure brought on by the global regulatory push for central clearing of all standard OTC derivative contracts, Calypso Technology worked closely with a number of clearing houses and exchanges to develop a software solution for central clearing and margining that matched their requirements. Core functionality of the Calypso® Central Clearing solution includes:

• Connectivity to trade affirmation platforms
• Clearing and settlement
• Margin calculations supporting multiple clearing house models
• Exchange-configured workflows
• Exchange-wide risk management
• Default management

The Calypso system has been recognised by Asia Risk for this innovation that leverages the company’s rich heritage around OTC derivatives management, modelling and processing.

The Calypso® Central Clearing product offering has been further extended to provide a solution for derivative clearing member firms. It offers one integrated solution for trade registration and management, margin calculation, credit limits, collateral management and client statements/reporting of client cleared transactions.

Sean McDermott, General Manager, APAC, Calypso, commented, “We are extremely proud to have won this award and to receive global recognition for our extensive and responsive work with the preeminent central clearing houses in the OTC derivatives product space. Calypso Technology has proven to be ahead of the curve, by designing and developing a solution that is closely aligned with the goals of financial institutions. We have already been adopted by five clearing houses and exchanges globally.”

Tokyo Stock Exchange and Japan Securities Clearing Corporation Select Calypso for CDS Clearing Service

• Calypso to manage clearing lifecycle for CDS
• Partnership brings improved transparency to OTC markets

Tokyo, October 25, 2010 — Calypso Technology, Inc., a global application software provider of an integrated trading, risk and processing platform to financial institutions and corporate treasuries, announced today that Tokyo Stock Exchange Group (TSE), Asia’s largest exchange, has selected Calypso Technology to provide the platform for its new credit default swap (CDS) clearing service to be provided by Japan Securities Clearing Corporation (JSCC). Clearing CDS on the iTraxx Japan Index, the Calypso product will manage the lifecycle of the new clearing service for OTC CDS, as the TSE and JSCC address the market need for central counterparty clearing in Japan.

Responding to the financial crisis and the resulting global demand for risk reduction, improved transparency and operational efficiencies particularly in the OTC market, TSE and JSCC collaborated to develop a central clearing function for CDS in Japan. “Throughout the crisis, we saw increased demand from our clients for enhanced risk management capabilities and back office processing services such as settlement and payments,” comments Kei Miyazato, Head of IT Business Department, TSE. “Providing central counterparty clearing for CDS and CDS index in Japan is a much required service. Our vision is to provide a proficient, advanced market standard solution that would achieve the goal of reducing counterparty risk. In addition to Calypso Technology’s experience in successfully implementing central clearing services at other global exchanges, the firm’s market perspective and their industry know-how are important to our program.”

Leveraging the Calypso product’s configurable workflow and out-of-the-box functionality to achieve straight-through-processing, TSE will use the system throughout the full lifecycle of OTC CDS clearing: limits checking, trade matching, confirmation, messaging, margining, netting and settlement. “Calypso Technology’s ability to provide a flexible, purpose-built solution to clearing houses, while fully integrating with trade and confirmation platforms across multiple product lines, has made Japanese CDS central clearing service a reality,” comments Akio Yamashita, Head of Operation Planning, JSCC

TSE and JSCC also identified several key aspects of the Calypso platform which would deliver added value to the central clearing service. The Calypso platform offers interfaces with external trade infrastructure systems such as Mark-IT and DTCC. Furthermore, the firm can leverage the system’s award-winning back-office and comprehensive functionality, including historical VaR, cash positions, reporting, Credit Event Processing and Trade Lifecycle Processing.

Charles Marston, Chairman & CEO, Calypso Technology, comments, “This joint work between a respected and instrumental exchange and forward-looking securities clearing organization further emphasizes our applied expertise in OTC derivatives central clearing and the significant in-roads we have made in APAC. Through our work with TSE and other global exchanges, we continue to facilitate central clearing services to financial markets around the world. We are delighted to be selected by TSE and look forward to working with them as this historical landmark project progresses.”

About Tokyo Stock Exchange Group (TSE)
Established in 1949, the Tokyo Stock Exchange, Inc. is the largest stock exchange in Asia and the second largest in the world by aggregate market capitalization of its listed companies.

The Tokyo Stock Exchange Group, Inc is comprised of several subsidiaries including Tokyo Stock Exchange, Inc., Japan Securities Clearing Corporation (JSCC) and Tosho System Service Co., Ltd(TSS), TSE IT subsidiary.

About Japan Securities Clearing Corporation (JSCC)
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 Law).

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, Japan Securities Clearing Corporation (JSCC) provides the clearing services for all cash transactions executed at any of the domestic stock exchanges and three PTSs (proprietary trading system) in Japan, as well as futures and options transactions executed at the Tokyo Stock Exchange, Inc.