Calypso Technology, the global capital markets platform provider, announced today that Banco Penta has licensed Calypso's integrated technology, enabling the bank to fully process interest rate derivatives front-to-back.
Based in Santiago, Chile, Banco Penta specializes in capital markets, financing, asset management and corporate finance for private banking, corporate and institutional clients.
Recently, Banco Penta has undertaken an aggressive expansion in the capital markets space, focusing on sophisticated financial products such as interest rate and currency derivatives, with the plan of doubling revenue year after year for the next five years. To this end, Banco Penta initiated a search for a technology platform that would enable trade automation and real-time processing with comprehensive controls that can scale with business growth while mitigating operational risks. After evaluating a number of suppliers in the international market for over a year, Banco Penta chose Calypso Technology due to the firm's experience in the region and in Chile and the product's complete front-to-back solution covering a broad range of financial assets. The bank recognized the platform's ability to manage cross-asset trades, positions and associated P&L results in real-time. Furthermore, the Calypso system demonstrated robust risk, credit limit and other controls, along with the scalability to support the bank's growth plans.
Banco Penta will use Calypso software as the foundation for its aggressive expansion in the interest rate and currency derivatives business. The system will support the main local and international products, such as cross currency swaps and interest rate swaps, in foreign currency with local benchmarks such as the CLF, the Peso, the Camara and the dólar observado rate. Through the Calypso solution, the bank and its branches will be able to offer clients a variety of swaps and financial products. Banco Penta will consolidate its technology infrastructure by incorporating offerings currently supported by other systems into Calypso, such as FX Spot, FX Forwards, FX Swaps, local and international fixed income and inflation indexed products.
Daniel Subelman, Head of Capital Markets for Banco Penta and Chairman for Penta Stock Exchange Brokers, states: "We needed an equally sophisticated technology partner with experience both in the local Latin American and global market to support our aggressive growth plan. After a long and thorough analysis of the alternatives available, it was clear that Calypso Technology provides the combination of a system that can support the complete process for all relevant asset classes with the implementation experience in the Chilean market."
This additional Chilean client represents Calypso's sustained success in the country and in Latin America. "Latin America is one of the fastest growing capital markets. Our success here reflects the strong local demand for technology solutions with a global scope and strategic partners that understand the unique needs of the regional banks. We are delighted to partner with Banco Penta and play an important role in the bank's expansion," says Carlos Patiño, Business Development Director for Calypso Technology in Latin America.