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Major Central Banks Around the Globe Rely on Nasdaq Calypso Leading Central Banking Solution

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Major Central Banks Around the Globe Rely on Nasdaq Calypso Leading Central Banking Solution

The solution delivers end-to-end automation that enables central banks to strategically and flexibly manage their reserve portfolios

Decision Drivers

As the world grapples with the aftereffects of the pandemic, including rising inflation and a potential recession, central banking activities have once again taken center stage. Recent monetary policy and open market operations have begun playing an increasingly significant role in maintaining systemic liquidity and stability. Additional demands created by larger balance sheets and reserves have required central banks to diversify into higher yielding asset classes more often, while simultaneously implementing complex portfolio and supervisory strategies.

In short, central banks striving to achieve jurisdictional financial stability in an environment pressurized by higher-risk reserve instruments, increased FX volatility, and a high volume of collateralized operations – while monitoring limits and risks across all instruments and portfolio structures – demand solutions that enable them to manage reserves, treasury, and collateral front-to-back.

Nasdaq Calypso Central Banking Offering

This solution enables clients to conduct market activities and manage operational functions across reserves, collateral, risk, and trading on a single front-to-back platform. Configurable, adaptable, and scalable, the solution enables central banks to improve operational efficiency – reducing risks and costs – and increase control of cash and portfolio positions. It also enables them to optimize their operations and core business activities, including managing reserves for internal and third-party portfolios for superior visibility in real-time, flexibly monitoring risks and limits across a wide array of cash, commodity, and derivative financial instruments, automating collateral management requirements, and enhancing STP with native exception management.
This solution, based on international best-practices and standards, is also available via the cloud. Nasdaq CapCloud™ powers the banks’ reserves, treasury, and collateral management systems. For central banks, CapCloud adoption represent a significant leap forward for its treasury and risk management systems – historically managed locally or in private clouds. This strategic move increases the bank’s flexibility to develop and deploy new custom code and quickly implement new releases with enhanced functionalities and security features.

The Benefits

In addition, key Central Banking Solution benefits include:

  • Real-time, comprehensive reserve management: Supports both internal tranches and third-party portfolios for increased visibility into P&L and risk in a single, multi-asset platform.
  • Operational efficiency: Delivers unrivalled automation and fully integrated, cross-asset capabilities for confirmations, payments, settlements, SWIFT messaging, etc.
  • Risk reduction: Consolidates or replaces fragmented systems with one solution for a “single source of truth”.

Central banks play such a fundamentally important role in their respective economies, especially given today’s risk environment.

Nasdaq is proud to offer a single platform that enables fine-grained configuration, optimal reserves management, and real-time positions monitoring. Our very active central bank community also creates a forum for practitioners to exchange ideas about best practices.

- Gil Guillaumey, Head of Capital Markets Technology, Nasdaq

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