- Partnership extended from clearing CDS to IRS
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 derivativesclearing 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.“
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