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ASX goes live with Calypso for OTC clearing
17 September 2013
Australian exchange extends partnership with technology firm
OTC derivatives clearing
The Australian Securities Exchange (ASX) has begun clearing OTC derivatives using Calypso Technology.
The ASX OTC Derivatives Clearing Service, which launched earlier in summer, is expected to be open for commercial clients in early to mid 2014. it uses Calypso for OTC derivatives dealer-to-dealer clearing of standardised Australian Dollar-denominated interest rate swaps.
Charles Marston, Chairman and CEO, Calypso Technology, said: “Calypso is at the forefront of the expansion of OTC clearing platforms around the world. Calypso OTC clearing is a proven, future-proof solution that enables efficient and competitive entry into new markets and clearing of new products. We look forward to continuing our partnership with ASX and delivering the next phase - client clearing in Australia.”
The exchange also uses Calypso for cross-margining, which allows members to reduce margin requirement by offsetting interest rate swaps with 24 ASX exchange-traded interest rate futures products positions.
ASX said the Australian financial services industry was highly supportive of the service, since it allowed them to keep collateral onshore and was a more efficient way of clearing OTC and exchange-traded derivatives.