Jan 29, 2018 - The FMIA is a regulation regarding the financial infrastructures for securities and derivatives transacti
PRESS RELEASE January 29, 2018 Japan Securities Clearing Corporation
JSCC receives Swiss FINMA recognition as Foreign Central Counterparty On January 26, 2018, Japan Securities Clearing Corporation (JSCC) was recognized concerning its Interest Rate Swap Clearing Business as a foreign central counterparty by the Swiss Financial Market Supervisory Authority (FINMA) under Article 60 of the Financial Market Infrastructure Act (FMIA) (Note 1), which was adopted in January 2016. The FMIA is a regulation regarding the financial infrastructures for securities and derivatives transactions and the market participants, and it prescribes authorization framework of OTC derivatives central counterparties of foreign countries. Under the FMIA, CCPs with Swiss clearing participants are required to obtain the foreign central counterparty recognition from the FINMA. With this recognition, JSCC is able to continue to provide its IRS clearing services to Swiss financial institutions. In response to this recognition, Hironaga Miyama, President & CEO of JSCC, commented as follows: “JSCC has been making efforts to respond to regulatory requirements in the U.S., Europe, Australia and Hong Kong (Note 2), and completed necessary procedures in Switzerland for providing IRS clearing services. JSCC will continue its efforts for further improvements of our services based on the needs of our global users, respond to the international regulations appropriately and establish frameworks for providing its services to diverse cross-border transactions.” For the list of FINMA’s authorized/recognized institutions including foreign CCPs, please refer to following website: https://www.finma.ch/en/~/media/finma/dokumente/bewilligungstraeger/pdf/bourses.pdf?la=en (Note 1)
Financial Market Infrastructure Act: (https://www.admin.ch/opc/en/classified-compilation/20141779/201708010000/958.1.pdf)
JSCC’s Press Release: “JSCC obtains Exemption from Registration as Derivatives Clearing Organization from CFTC” (https://www.jpx.co.jp/jscc/en/information/press_releases/20151027.html) JSCC’s Press Release: “Expansion of Scope of Cleared Products subject to Exemption from DCO Registration at CFTC” (https://www.jpx.co.jp/jscc/en/information/press_releases/20170516.html) JSCC’s Press Release: “JSCC receives ESMA recognition as Third-Country CCP” (https://www.jpx.co.jp/jscc/en/information/press_releases/20150430.html) JSCC’s Press Release: “JSCC Designated as Prescribed CCP in Australia”
PRESS RELEASE (https://www.jpx.co.jp/jscc/en/information/press_releases/20150909.html) JSCC’s Press Release: “Authorization as ATS-CCP and Designated CCP in Hong Kong” (https://www.jpx.co.jp/jscc/en/information/press_releases/20160901.html)
About Japan Securities Clearing Corporation In January 2003, JSCC was licensed in Japan as the first clearing organization to conduct a “Securities Obligation Assumption Service” (now called “Financial Instrument Obligation Assumption Service”) and started clearing services for transactions executed on Japanese Stock Exchanges.
The birth of JSCC enabled the
integration of clearing processes that used to be performed separately by individual stock exchange, dramatically improving the efficiency and serviceability of the post-trading processing in securities markets.
Since its start,
JSCC has steadily expanded scope of its services, and now, in addition to listed products, as the Financial Instruments Clearing Organization, JSCC currently provides clearing services for OTC derivatives (CDS and Interest Rate Swaps) and OTC Japanese Government Bond transactions. JSCC’s OTC derivatives clearing services are broadly used by major financial institutions, both domestic and foreign.
As of January 29, 2018, JSCC has 23 Clearing Participants and 85 affiliates/clients for IRS Clearing
Services and 10 Clearing Participants and 4 affiliates for CDS Clearing Services. For details of JSCC, please see https://www.jpx.co.jp/jscc/en/. Strategic Planning Division, Japan Securities Clearing Corporation (Tel: 03-3665-1234)