T-Zero and Calypso Markets Integration
Automated Integration Between T-Zero and Calypso
Background
T-Zero's mission is to provide the technology to modernize communication standards for parties involved in credit derivatives trading. Through its messaging system T-Zero provides a platform for communication and electronic affirmation of CDS trades on a T+0 basis combined with a new market standard for workflow and accountability.
While T-Zero provides its own front-end application for trade capture, the full benefits of the T-Zero platform are realized through the integration of the platform with clients’ own trading and trade capture systems.
Digiterre has been working with T-Zero providing consulting services to T-Zero’s integration team and working closely with T-Zero’s clients to develop integration between their systems and the platform for some nine months. This has included the development of integration between T-Zero and GlobeOp’s Kondor+ based system.
"Digiterre delivers on time and on budget while effectively managing evolving requirements—I strongly recommend them," says Ben Lis, Head of Integration at T-Zero.
Project Summary
Seamless integration between T-Zero and Calypso:
- Packaged solution for ease of implementation
- Support for all T-Zero trade and transaction types
- Robust and flexible architecture
The Challenge
With the growth in the use of the Calypso cross-asset trading platform (www.calypso.com) for credit derivatives trading by both sell and buy-side organisations, T-Zero saw an opportunity for a packaged connectivity solution between T-Zero and Calypso providing:
- Coverage for all T-Zero supported trade types—CDS, CDS Index and Index Tranche.
- Coverage of all T-Zero transaction types—new deals, allocations, terminations, novations and voids.
- Support for processes including Prime Brokers.
- Independence between the Connector and the Calypso implementation.
- A robust architecture with guaranteed message delivery.
- A packaged solution with minimal configuration required for each client installation.
The Technology
Java 1.5:
- Connector implements T-Zero messaging API
- Connector implements the Calypso Event Engine API
- XML files for configuration and data mapping
The Solution
As a Calypso partner with excellent domain knowledge in the credit derivatives area combined with a deep knowledge of the T-Zero messaging API, Digiterre was engaged by T-Zero to implement the Calypso Connector. This included specification, prototyping, development and testing.
To manage and reduce project risk Digiterre adopted an iterative development model. We split the project into a series of iterations, each focusing on a specific area of functionality and following a complete design/build/test cycle. The first iteration addressed architectural risk by prototyping the design for a basic transaction. Further iterations added new deal, termination and novation processes.
Digiterre worked closely with T-Zero throughout the development ensuring the Connector was integrated with the latest versions of the API and with Calypso to ensure Calypso best practice was being followed. Key iterations included a review by T-Zero and selected beta clients to ensure that the Connector was meeting all business needs. Feedback from these reviews was then fed into future iterations.