Calypso answers CCP regulatory push
27 October 2010 San Francisco
Image: Shutterstock
Calypso Technology has just 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."
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."
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