The introduction of Japanese funds onto the FX settlement service follows a multi-year effort to onboard the Japanese buy-side community to CLSSettlement.
Regulation and collateral costs have made the cleared derivatives market much more attractive for the buy-side, but what else will it take for them to voluntarily take part?
Private debt and alternative asset classes were cited by the buy-side as the most operationally costly to manage.
The delay will help ease fears among buy-side firms, many which were reportedly nowhere near ready to comply with the 1 March go-live.
Asset managers have barely completed the re-write of collateral exchange agreements for the incoming variation margin rules.