HSBC picks Nasdaq Calypso for exchange-traded derivatives clearing

HSBC said on Monday it has adopted Nasdaq Calypso for its exchange-traded derivatives (ETD) clearing platform, bringing its ETD and over-the-counter derivatives clearing capabilities onto the technology.

“Using Nasdaq Calypso on a multi-product basis is an enabler for cross-margining that enhances our clients’ ability to manage their collateral and market risk within the HSBC Real Clear product suite,” said Najib Lamhaouar, global head of OTC clearing and ETDs at HSBC, in a release. “With real-time visibility of clearing activity, margin, collateral and risk exposure, HSBC Real Clear helps clients make more informed funding and risk decisions to operate more efficiently.

“Our partnership with Nasdaq positions us well for changes in the clearing space, including the move to always-on markets and the increasing demand we are seeing from market participants for tokenised assets and collateral.”

HSBC's Derivatives Clearing Services executes ETD transactions for institutional clients across 40 global futures exchanges and clears ETDs and OTC derivatives through major central counterparties (CCPs). The bank has used Nasdaq Calypso to clear clients' OTC derivatives since 2011, including interest rate, inflation and credit default swaps.

HSBC also uses the platform for repo clearing and plans to extend it to US Treasury cash transactions by the end of the year as it prepares for mandatory clearing.

The HSBC expansion follows other recent deployments of Nasdaq Calypso across capital markets infrastructure. Five of Georgia's largest commercial banks selected the platform in July as part of a National Bank of Georgia-backed programme to modernise treasury infrastructure spanning trading, derivatives, risk management and settlement.

HSBC targets cross-margining and always-on clearing

HSBC Real Clear provides clients with real-time information on clearing activity, margin, collateral and risk, alongside margin forecasting, intraday monitoring and scenario analysis.

Nasdaq said changing trading hours and technology requirements are increasing pressure on firms to modernise their clearing infrastructure.

“The pace of market evolution and technology innovation is placing new demands on clearing infrastructure,” said Magnus Haglind, head of capital markets technology at Nasdaq, in a release. “As markets move toward an always-on model, firms are seeking modern, streamlined systems that can support always-on risk management, AI adoption and ever greater ecosystem connectivity.

“With that foundation in place, Nasdaq Calypso offers the flexibility to adapt to new asset classes, markets and client requirements, without adding operational complexity.”

Nasdaq Calypso provides capital markets and treasury technology to banks, brokers, asset managers, central banks and other financial institutions. Nasdaq said the expansion of its ETD clearing capabilities forms part of its strategy to develop the platform as a modular system for increasingly complex clearing workflows.

The HSBC expansion comes as Nasdaq builds out its technology for increasingly continuous and tokenised markets. The exchange group established its Digital Liquidity Networks business in August, bringing together its digital asset and market modernisation capabilities as it targets always-on markets across traditional and digital assets.