Calypso Technology, an application software provider of an integrated trading, risk and processing platform to financial institutions and corporate treasuries, has launched an over-the-counter clearing service for derivative clearing members.
The latest product development builds on the Calypso System as a clearing platform implemented by a number of clearing houses for interest rate derivatives and credit derivatives 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 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,” says Amir Khwaja, director of risk management, Calypso Technology.