Calypso adds credit derivatives trading to platform


Calypso Technology announced today that it has launched Calypso 7.0 with increased functionality for credit derivatives trading. Calypso 7.0 enables banks to manage increasing volumes and innovation in the credit derivatives market by empowering them to make effective decisions, manage risk and understand exposure in real-time.

Calypso's technology provides an integrated view of pricing and risk and allows banks to increase credit derivative trading volumes and monitor positions. Calypso 7.0 can be scaled to manage the significant volume of market data unique to trading credit instruments and supports the complexity of structuring and trading hybrid products. Calypso's front-to-back platform enables straight through processing (STP) of trades and better management of workflow between traders, sales and the back office. The integration of credit derivatives functionality with Calypso's leading cross-asset platform allows traders to hedge credit derivatives against other instruments, such as fixed income products.

Calypso 7.0 supports a range of credit derivatives products, including:
  • Hybrids
  • Index and Basket Trades (including Tranched Index Products) - Traders can capture a trade and calculate exposure to the continually changing basket of underlying stocks.
  • Resecuritisations - including CDO Squared.
  • Synthetic, Managed and Static CDOs
  • Swaps - including Single Name Credit Default Swaps, 'Nth' Default Swaps, Asset Swaps and Total Return Swaps.

"Fuelled by continuous innovation, credit derivatives are the most dynamic instruments in finance today and banks are seeing significant profitability in this area," says Charles Marston, CEO, Calypso. "The market has grown so rapidly and to such volumes that existing systems have come under strain and market players are recognising the need for trading technology specifically designed to support these complex products. The credit derivatives market has seen significant growth over the past year alone and will only continue to accelerate. We are committed to providing out-of-the-box technology that is flexible enough to react to market changes and adapt to new trading instruments and are excited about the launch of Calypso 7.0."

Additional system enhancements include integrated front office functionality to support FX trading and back office support for US fixed income products.

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