The institutions will implement the Calypso system to manage their FX activities, portfolio management, reserve management, collateral management, risk management and accounting.
Banque de France and Banco de Espana initiated the market activities processing system project in 2013 to replace legacy systems. After a restricted tender process, they selected Calypso on the basis of its strong technical fit, cross asset end-to-end functionality and ability to support capital markets operations of multiple central banks on one single platform, shared as a common system, while fulfilling strict data segregation requirements.
The Calypso solution will support FX and FX derivatives, fixed income, money market instruments, interest rate derivatives, credit derivatives, precious metals and equities.
Calypso chairman and CEO Charles Marston said, “We expect that other central banks both within the eurozone and worldwide will closely monitor this endeavour.” The company also works with the Hong Kong Monetary Authority and the Bank of Korea.