JSCC Implements Calypso Technology for New IRS Clearing Service

Japan Securities Clearing Corporation (JSCC) has gone live with the Calypso system for client clearing of JPY interest rate swaps (IRS) and collateral management.

Ahead of the mandatory clearing of IRS expected in 2014, JSCC launched its voluntary client clearing service with the support of the Japanese dealer community. Using the Calypso collateral management system JSCC will be able to provide real-time headroom checks on segregated accounts. The system will allow JSCC to segregate clients’ accounts from member banks, providing additional security to accounts and reducing their counterparty risk.

Citi, Mizuho, Morgan Stanley MUFG, Nomura and RBS are among the dealers who have signed up to offer client clearing.

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 service covers clearing of both amortized swaps and accreting swaps.

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.”