HKEx New CCP, OTC Clear, Clears First OTC Derivatives Trade
Calypso Technology Inc., the leading integrated financial markets platform provider, today announced that OTC Clearing Hong Kong Limited (OTC Clear), a subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), cleared its first OTC derivatives transaction using Calypso’s CCP OTC clearing solution when it commenced business on 25th November 2013.
OTC Clear, whose 12 founding shareholders include five mainland Chinese banks, selected Calypso as the system to provide end-to-end OTC clearing, processing and risk management of interest rate swaps and FX non-deliverable currency forwards. OTC Clear is also the first clearing house to employ Calypso’s collateral management module to handle and process collateral with its clearing members.
The success of the recent go-live, where the first trade cleared was a non-deliverable Renminbi 7-day repo swap, highlights the evolving market structure of Hong Kong as a key financial center and will further leverage Hong Kong’s position as the premier offshore Renminbi center.
OTC Clear’s selection validates Calypso’s experience and strong global track record delivering and implementing CCP clearing solutions.
“In looking for a partner, we wanted a provider who had deep experience in implementing OTC clearing technology and who fully understood our business and our position as a financial hub for the Renminbi-denominated products in the OTC marketplace,” said Gerald Greiner, Global Head of Clearing at HKEx.
“We are thrilled to be working with such an important organization in the Chinese and APAC marketplace,” said Charles Marston, Chairman and CEO of Calypso. “Our work with HKEx reinforces our position as a leading technology provider for the global OTC markets. We look forward to the continued success of the partnership with HKEx and further establishing Calypso as the world’s trusted clearing solutions provider.”