Pierpont Derivatives Launches Swaps Trading Business

Pierpont Derivatives has gone live with a solution from Calypso System to support the launch of its new swaps trading business.

The firm's trading desk is using the platform for trade pricing and capture, consolidated P&L and risk management for interest rate swaps, futures and treasuries.

Pierpont Derivatives is a wholly-owned subsidiary of Pierpont Securities Holdings, LLC, which is the sole owner of Pierpont Securities, LLC, an SEC-registered broker-dealer providing institutional clients with liquidity, execution services and strategic advice pertaining to the US Treasury, federal agency and repurchase markets.

Prior to the launch of its interest rate swaps trading business, Pierpont Derivatives was seeking a technology solution that would allow it to go to market quickly. After a selection process, Pierpont Derivatives selected the Calypso System based on its front-office functionality for OTC derivatives and other capital market products as well as its central clearing capabilities and integration with swaps market participants.

Akshay Das, managing director and head of derivatives at Pierpont Derivatives, notes, "Speed to market was absolutely crucial due to how quickly the swaps market is changing. We needed an innovative technology solution that could comprehensively support the launch of our new business -- as well as allow us to enter new derivatives trading markets in the future."

He continues: "Calypso was the obvious choice. The Calypso team delivered the expertise and flexibility to quickly get us up and running with the specific capabilities we needed."

The post-crisis changes in the swaps market include a major industry shift in interest rates swaps pricing, including a move to OIS discounting from LIBOR discounting. Meeting Pierpont Derivatives' requirements, the Calypso System provides Pierpont Derivatives with curve construction capabilities to ensure the firm is utilizing the most current valuation techniques.

"The swaps market is truly undergoing a revolutionary change," comments Charles Marston, CEO of Calypso Technology. "We're pleased to be working with Pierpont Derivatives in preparing them for and allowing them to launch a new business in light of this fundamental industry overhaul."

Phil Albinus is the former editor-in-chief of Advanced Trading. He has nearly two decades of journalism experience and has been covering financial technology and regulation for nine years. Before joining Advanced Trading, he served as editor of Waters, a monthly trade journal ... View Full Bio