The Japan Securities Dealers Association (JASDA), the Tokyo Stock Exchange (TSE), the Osaka Stock Exchange (OSE) and the other Japanese stock exchanges have agreed to establish a single central counter-party clearing house, or CCP. It will commence operations in January 2003.
At present, trades in Japanese equities and corporate bonds on each market are reconciled separately before being passed to JASDEC for settlement between accounts. From January, trades in these securities will be netted by a CCP before passing to JASDEC for settlement.