The Japan Securities Clearing Corporation (JSCC) has launched the first interest rate swaps (IRS) central counterparty (CCP) clearing services in Asia Pacific.
JSCC adopted Calypso Technology for initial and margin calculations, trade lifecycle processing and risk management.
Calypso says it is working with banks and infrastructures to facilitate reforms in the OTC markets following various global regulations mandating central clearing of OTC derivatives.
JSCC began CDS Index clearing in 2011, also using Calypso systems.
Yasushi Suzuki, managing director of JSCC, says JSCC needed a system that could scale to the volumes of the OTC business in Japan.
Calypso Technologys 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, Suzuki says. 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.
(CG)