The Japan Securities Clearing Corporation (JSCC) is now allowed to clear for US customers while remaining an exempt derivatives clearing organisation (DCO) subject to conditions.
The JSCC cleared ¥8.3 quadrillion (US$56.3 trillion) in yen interest-rate swaps in 2024.
On 12 September, the US Commodity Futures Trading Commission (CFTC) issued a no-action letter alongside an amended exempt DCO order allowing, under specified conditions, eligible US persons to clear Japanese-yen interest-rate swaps at JSCC.
Clearing must be provided by non-US JSCC clearing members that are affiliates of a CFTC-registered futures commission merchant (FCM).
Customers must also be eligible contract participants (ECPs) and receive disclosures like those for US customer-asset protections under the US bankruptcy code.
The CFTC’s letter notes JSCC’s 2024 market share of “approximately 55%” of global JPY-IRS by traded notional.
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