JSCC rolls out Calypso collateral management system
The Japan Securities Clearing Corporation has gone live with a new system for client clearing of Japanese yen-denominated interest rate swaps and collateral management.
The JSCC will use the Calpyso Technologies’ collateral management system to provide real time headroom checks on segregated accounts. By segregating client accounts from member banks, the JSCC claims it is providing additional security and reducing counterparty risk.
The JSCC had already launched its voluntary client clearing service, which was supported by Citi, Mizuho, Morgan Stanley MUFG, Nomura and RBS.
The company’s new service includes drip-feed clearing, real time clearing status, request for consent and collateral deposit/withdrawal. It also covers clearing of amortised swaps and accreting swaps.
An amortised swap is one where the principal decreases as it nears maturity, whereas an accreting swap is the opposite.
“The launch of our client clearing service is an essential step for JSCC in expanding its service line in OTC derivatives clearing,” said Takeshi Hirano, director and strategic planning head for the OTC derivatives clearing service at the JSCC. “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.”
The JSCC has expanded its use of Calypso for its clearing services over time. It started with the launch of CDS index clearing for member firms in June 2011, and continued with the addition of interest rate swaps clearing services in October 2012.