The Japan Securities Clearing Corporation (JSCC), a member of the Japan Exchange Group, has gone live with Calypso Technology’s system for client clearing of JPY interest-rate swaps (IRS) and collateral management.
The JSCC has launched its client-clearing service for JPY interest-rate swaps, including near-real-time drip-feed clearing, real-time integration with members and affiliates for clearing status, request for consent, and collateral deposit. The Japanese firm will be using Calypso's collateral management platform to provide real-time headroom checks on segregated accounts. By segregating clients' accounts from member banks, the JSCC provides additional security to accounts, reducing their counterparty risk.
"The launch of our client-clearing service is an essential step for the JSCC in expanding its service line in OTC derivatives clearing," says 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."
Dealers that have signed up to offer client clearing include Citi, Mizuho, Morgan Stanley MUFG, Nomura, and RBS.
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