BM&FBovespa selects Calypso to register and clear OTC derivativess

Source: Calypso Technology

Calypso Technology, a global application software provider of an integrated trading, risk and processing platform to financial institutions, announced today that BM&FBovespa, the largest financial exchange in Latin America, has selected the Calypso System to register and manage OTC derivatives operations.

The Exchange licensed the Calypso platform after conducting an intensive Proof of Concept (POC) evaluation at its data processing center in Brazil, which confirmed that the Calypso System is among the most flexible and complete in the world for the registration, pricing, risk assessment and lifecycle management of OTC derivatives and cash products.

In Brazil, OTC trades are required to be officially registered so that the national securities regulator and financial system have absolute transparency into overall derivatives exposure on a market-wide basis and the ability to track the intraday mark-to-market value of each OTC trade. The Calypso System will be implemented to provide valuation for a wide array of OTC derivatives to ensure that each trade meets the predefined parameters set by BM&FBOVESPA.

"With the Calypso platform, BM&FBOVESPA intends to modernize, enhance and expand its OTC operations registration service, offering quality and agility to its customers, and complete analysis instruments for self-regulation and regulatory activities," said Marcelo Maziero, Chief Products and Customers Officer of BM&FBOVESPA.

BM&FBOVESPA and Calypso Technology will conclude implementation of Phase One of the platform in 2012, which will allow for the registration of contracts from banks with their non-financial customers as counterparties. The implementation of Phase Two - for registration of contracts from the other counterparties and OTC derivatives clearing - is forecast to be completed in the first quarter of 2013. Phase Three will provide collateral management services for bilateral risk mitigation with an implementation date to be announced in the future.

"We are extremely excited to count BM&FBOVESPA as a customer. Calypso Technology is deeply committed to the Latin American market and we look forward to working with BM&FBOVESPA to develop the future market structure for OTC derivatives and other products in Brazil," states Charles Marston, Chairman and CEO of Calypso Technology. 

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