JSCC Launches New Client Clearing Service Using Calypso Technology

• Japan Securities Clearing Corporation (JSCC) goes live with the Calypso system for client clearing of JPY interest rate swaps and collateral management

Tokyo, February 26, 2014 — Calypso Technology, Inc., the leading integrated capital markets platform provider, today announced that Japan Securities Clearing Corporation (JSCC), a member of the Japan Exchange Group, has gone live with the Calypso system for client clearing of JPY interest rate swaps (IRS) and collateral management.

Ahead of the mandate expected in 2014, JSCC launched its voluntary client clearing service with the support of the Japanese dealer community. Dealers who have signed up to offer client clearing include Citi, Mizuho, Morgan Stanley MUFG, Nomura and RBS. JSCC’s new client clearing service includes drip-feed clearing (near real-time), real-time integration with members and affiliates for clearing status, request for consent and collateral deposit/withdrawal. The enhanced service covers clearing of both amortized swaps and accreting swaps.

The Calypso collateral management system will enable JSCC to provide real-time headroom checks on segregated accounts. By segregating clients’ accounts from member banks, JSCC provides additional security to accounts, reducing their counterparty risk. JSCC is one of the first clearing houses globally to offer this service.

Takeshi Hirano, Director, Strategic Planning Head, OTC Derivatives Clearing Service, JSCC, commented, "The launch of our client clearing service is an essential step for JSCC in expanding its service line in OTC derivatives clearing. Calypso's state-of-art technology and flexible platform has significantly contributed to our smooth migration from the current dealer-to-dealer environment to accommodate the wider range of customer services."

“Calypso is thrilled to be working with such an innovative client on their continued expansion into the OTC derivatives clearing services,” explained Charles Marston, Chairman and CEO, Calypso Technology. “Calypso continues to grow in the OTC derivatives clearing space, enabling our clients to meet both regional and global requirements.”

JSCC has expanded their usage of the Calypso clearing solution over time, starting with the launch of CDS index clearing for member firms in June 2011. In October 2012, the firm added IRS clearing services for its participants.

About Japan Securities Clearing Corporation

In January 2003, Japan Securities Clearing Corporation (JSCC) was licensed as the first clearing house in Japan to conduct the current Financial Instruments Obligation Assumption Service and commenced clearing services for transactions executed on Japanese stock exchanges. The birth of JSCC led to dramatic improvements in the efficiency and serviceability of the securities market by consolidating the clearing services that used to be performed separately by individual stock exchanges.

Recently, JSCC has extensively expanded its clearing services, starting with the launch of CDS (Credit Default Swap) clearing in July 2011, as well as the launch of IRS (Interest Rate Swap) clearing in October 2012. In February, 2013, the scope of eligible IRS clearing was further expanded. Also, in July 2013, JSCC commenced the clearing for Osaka Stock Exchange-listed derivatives transactions. Upon the merger with JGBCC (Japan Government Bond Clearing Corporation) in October 2013, JSCC started OTC JGB clearing, making the range of its clearing services even wider.