The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

JSCC and Tokyo Financial Exchange Plan Introduction of IRS and CDS CCP

The Japan Securities Clearing Corporation (JSCC) and the Tokyo Financial Exchange (TFX) have confirmed that they are both planning to introduce clearing for credit derivatives this year, in the form of interest rate swaps (IRSs) and credit default swaps (CDSs). Both parties have been planning the move for around six months and are currently in discussions with other institutions and vendors concerning infrastructure and fees.

JSCC, which is majority owned by the Tokyo Stock Exchange, and TFX, which is member owned, are seeking to introduce clearing for these instruments in order to bring down settlement risk in the domestic derivatives market. The move is therefore similar to that of their US and European counterparts in the clearing central counterparty (CCP) race. It would also add another CCP contender to the global picture, which may not go down well in some corners of the market.

Currently, many Japanese institutions use LCH.Clearnet’s CCP to clear their IRSs and both JSCC and TFX have taken this into account and are already in talks with the London-based firm about establishing clearing links.

Related content

WEBINAR

Recorded Webinar: Entity identification and client lifecycle management – How financial institutions can drive $4 billion in cost savings

A new model in Legal Entity Identifier (LEI) issuance has created significant opportunities for financial institutions to capitalise on their KYC and AML due diligence. By becoming Validation Agents and obtaining LEIs on behalf of their clients, financial institutions can enhance their client onboarding experience, streamline their internal operations, and open the door to new,...

BLOG

GLEIF Calls Global Industries to Join Development of Cryptographically Verifiable LEI

The Global Legal Entity Identifier Foundation (GLEIF) has set out grand plans to create a digitised LEI service based on a digitally verifiable credential containing the LEI – the vLEI – and able to provide automated identity verification between counterparties. The ambition is for all industry sectors globally, including financial services, to embed new and...

EVENT

RegTech Summit Virtual

The RegTech Summit Virtual is a global online event that will be held in June 2021 with an exceptional guest speaker line up of RegTech practitioners, regulators, start-ups and solution providers to collaborate and discuss innovative and effective approaches for building a better regulatory environment.

GUIDE

Entity Data Management Handbook – Seventh Edition

Sourcing entity data and ensuring efficient and effective entity data management is a challenge for many financial institutions as volumes of data rise, more regulations require entity data in reporting, and the fight again financial crime is escalated by bad actors using increasingly sophisticated techniques to attack processes and systems. That said, based on best...