On Monday, Calypso Technology, a provider of capital markets trading software solutions for global financial institutions, announced that The Master Trust Bank of Japan (MTBJ) is now live with Calypso for derivatives back office processing. MTBJ will utilise Calypso's solution to systemise all of its asset management operations. Specific enhancements have been made to the system to support the Japanese market.
In the initial period of operation, target products are limited to domestic and international interest rate swaps, currency swaps, domestic credit default swaps, total return swaps, swaption, cap and floor. However, coverage may expand in the future.
Japanese pension funds are increasingly investing in derivative products such as interest rate swaps. The products used will further expand once the new Securities Exchange Act is enforced later this year. As a result of this, MTBJ anticipates further increases in the need for OTC derivative trades such as credit derivatives and interest swaps, creating a greater need for supporting technology.