The promised Japan Government Bond Clearing Corporation (JGBCC) was formally established today, with a view to starting operations in January 2005. The anouncement was made by the Reform Promotion Center for Securities Clearing and Settlement System in Tokyo.
The JGBCC will act as the central counter-party between financial institutions dealing in JGBs. 19 Japanese banks promoted the JGBCC and contributed financially to its establishment. The JGBCC will now obtain a business license, and agree rules of business. It is presently capitalised at Yen 344 million.