The Japan Securities Clearing Corporation (JSCC) decided today that it will go live on 14 January 2003, as originally planned. This remains subject to regulatory approval from the Financial Services Agency (FSA), warns Citibank in Tokyo, but this is expected to be received this month.
Problems between JSCC and the Osaka Securities Exchange (OSE)over the funding of the Default Compensation Reserve have been resolved, the OSE has signed the agreement with the JSCC and the five other exchanges – Tokyo Stock Exchange, the Nagoya, Sapporo and Fukuoka Securities Exchanges and the JASDAQ OTC Market.
However, it is reported that OSE is still unhappy about the domination of JSCC by the Tokyo Stock Exchange, and in particular about the higher cost structure which it believes that domination causes.