Enhanced Cloud-Based Clearing Solutions for Capital Markets

By CIOReview | Thursday, May 12, 2016
Kshore Bopardikar, CEO, Calypso

Kshore Bopardikar, CEO, Calypso

SAN FRANCISCO, CA: Calypso Technology, a prominent capital markets software and service provider recently announced that it is collaborating with Sernova Financial, an innovative provider of turn-key post-trade services to provide next-generation, cloud-based clearing services. The partnership will reduce the barriers for both regional banks and investment management firms entering into capital markets.

Sernova Financial uses an established single platform which is the backbone of most OTC clearing houses and supports the full front-to-back lifecycle management of cash, securities and derivatives. However, the present OTC clearing market has undergone significant changes—particularly reduced capacity, increased fees, and uncertain market access. As such, Calypso’s cross-asset front-to-back platform for trading, processing, risk management and accounting handles all the aspects of cleared and over-the-counter (OTC) derivative markets. Calypso’s integrated OTC clearing solution offers clearing houses (CCPs), clearing members and end users with a modern, robust and reliable cross-asset clearing solutions.

“Calypso provides clients with a single platform that enables system consolidation, business innovation and growth,” said Kshore Bopardikar, CEO, Calypso. In essence, all the solutions run on Calypso’s real-time platform, a low-latency multi-tiered open service-oriented architecture designed from inception to perform cross-asset front-to-back straight-through processing. Sernova Financial’s cloud-based clearing service recreates the shared infrastructure and service elements of traditional clearing brokers and counterparties. Deploying proven technology from Calypso Technology, the Sernova Financial platform will be able to redefine the shared infrastructure and service elements of a traditional clearing broker. This will in turn provide the clients with a faster route to market with high scalability and lower cost structure.

"This unique partnership is providing blended learning that equips skills and knowledge to maximize the full value of client’s Calypso investment," said Charles Marston, Executive Chairman at Calypso Technology.  “The future of capital markets is hard to decipher and turbulent times might lie ahead, but Calypso is well prepped to face it. Sernova Financial is leveraging the Calypso platform to deliver a dynamic, feasible, long-term solution to a growing problem in our industry.”

Besides, as Regulators have increasingly wanted investors to resolve most margined financial instruments via Central Clearing Counterparties (CCPs), the Sernova platform will enable local banks and investment management firms to "self-clear" and, where appropriate, allow them to service franchise clients through domestic and global CCPs.