The Japan Securities Clearing Corporation (JSCC) has gone live with a Calypso system for client clearing of JPY interest rate swaps (IRS) and collateral management.
JSCC, a member of the Japan Exchange Group, launched its new service, which includes drip-feed clearing, real-time integration with members and affiliates for clearing status, request for consent and collateral deposit/withdrawal.
The enhanced service covers clearing of both amortized swaps and accreting swaps, and comes ahead of a clearing mandate expected in 2014.
Dealers who have signed up to offer client clearing include Citi, Mizuho, Morgan Stanley MUFG, Nomura and RBS.
Takeshi Hirano, director, strategic planning head, OTC derivatives clearing service, JSCC, said: "The launch of our client clearing service is an essential step for JSCC in expanding its service line in OTC derivatives clearing.”
JSCC has increased its use of Calypso’s clearing offering over time, starting with the launch of CDS index clearing for member firms in June 2011. In October 2012, the firm added IRS clearing services for its participants.
The collateral management system by Calypso, a capital markets platform provider, is aimed at enabling JSCC to provide real-time headroom checks on segregated accounts, reducing counterparty risk.