Japan Designs CCP Functionalities For OTC Market

Japan Securities Clearing Corporation (JSCC) and Tokyo Stock Exchange, Inc. (TSE) have set up a Working Group on clearing operations for OTC derivatives trades in accordance with the report released from The Study Group on Post Trade Processing of OTC

By None

Japan Securities Clearing Corporation (JSCC) and Tokyo Stock Exchange, Inc. (TSE) have set up a Working Group on clearing operations for OTC derivatives trades in accordance with the report released from The Study Group on Post-Trade Processing of OTC Derivatives Trades (on 27 March 2009).

The objectives:

The Working Group is set up to design detailed CCP functionality such as risk management for the purpose of launching a clearing service for OTC derivatives trades (interest rate swaps and CDS). The Working Group is expected to run until the first half of the 2009 fiscal year.

Based on the conclusion of the Working Group, JSCC will develop clearing operations for OTC derivatives trades.

Management of the Working Group:

JSCC and TSE will jointly manage and facilitate discussions in the Working Group.

Members:

Member firms and observers are listed below. The Working Group may invite guest speakers.

Goldman Sachs Japan Co., Ltd.

GFI Securities Ltd. Tokyo Branch

JP Morgan Securities Japan Co., Ltd.

Daiwa Securities SMBC Co. Ltd.

Deutsche Securities Inc.

Nikko Citigroup Limited

Nomura Securities Co., Ltd.

Barclays Capital Japan Limited

Mizuho Corporate Bank, Ltd.

Mizuho Securities Co., Ltd.

Sumitomo Mitsui Banking Corporation

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Mitsubishi UFJ Securities Co., Ltd.

Merrill Lynch Japan Securities Co., Ltd.

Morgan Stanley Japan Securities Co., Ltd.

UBS AG, Tokyo Branch

Observers:

ISDA

Japan Securities Depository Center, Inc.

Nishimura & Asahi

Bank of Japan

Japan Securities Dealers Association

Markit Group Japan K.K.

L.D.

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