Regulators from Europe and Japan have signed a Memorandum of Cooperation (MOC), which establishes oversight of Japanese clearing houses in accordance with European rules.
The European Securities and Markets Authority signed the agreement with the Japanese Financial Services Agency (JFSA) on Tuesday.
The MOC formally recognizes Japan’s clearing houses under the European Market and Infrastructure Regulation (EMIR), allowing Japanese CCPs (central counterparties) to offer clearing services to members based in the EU.
The MOC allows ESMA to determine the legal and supervisory arrangements of Japan to ensure that Japanese CCPs comply with EMIR requirements, and the legal framework of Japan provides an equivalent system for the recognition of Japan’s clearers.
Last October, the European Commission granted equivalency to Australia, Hong Kong, Japan and Singapore, allowing clearing houses based there to clear standardized OTC derivatives.
ESMA and Japan Sign Clearing House Oversight Agreement
Regulators from Europe and Japan have signed a Memorandum of Cooperation (MOC), which establishes oversight of Japanese clearing houses in accordance with European rules.