The Tokyo Stock Exchange (TSE) has selected software application provider Calypso Technology to supply the platform for its new credit default swap (CDS) clearing service.
The clearing service will be provided by the Japan Securities Clearing Corporation (JSCC). The Calypso platform will manage the clearing lifecycle for over-the-counter (OTC) CDSs – including limits checking, trade matching, confirmation, messaging, margining, netting and settlement – as well as CDSs based on the iTraxx Japan index.
“Throughout the crisis, we saw increased demand from our clients for enhanced risk management capabilities and back-office processing services such as settlement and payments,” commented Kei Miyazato, head of IT business department, TSE. “Providing central counterparty clearing for CDS and CDS index in Japan is a much required service. Our vision is to provide a proficient, advanced market standard solution that would achieve the goal of reducing counterparty risk.”
“This joint work between a respected and instrumental exchange and forward-looking securities clearing organisation further emphasises our applied expertise in OTC derivatives central clearing and the significant in-roads we have made in APAC,” said Charles Marston, chairman and CEO at Calypso.