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Comment for Proposed Rule 76 FR 44508

  • From: Goichi Naohara
    Japan Securities Clearing Corporation

    Comment No: 48197
    Date: 9/26/2011

    Comment Text:

    As a CCP in Japan we would like to submit the following information.

    In general, OTC Derivatives trades have just started to be cleared through Japanese CCP (namely Japan Securities Clearing Corporation - JSCC) since 19th July this year.

    a) So far only the Index CDS (namely all the currently traded series of iTraxx Japan) is being centrally cleared through JSCC under the regulatory supervision by Japanese FSA (Financial Services Agency).
    All the currently traded series of iTraxx Japan CDS is in scope for the clearing and IRS (Interest Rate Swap) is also scoped to be included for eligible clearing product by November 2012.

    b) i) As the Index CDS has just begun to be cleared through the Japanese CCP since 19th July 2011, the total cleared trading volume (as well as the outstanding) as to end August 2011 has been 29 Billion Yen (or approx USD 372Mil.).

    ii) External vendor system as well as in-house developed IT platform is being used to calculate daily margin amount.

    iii) Currently all the clearing Index CDS trades are traded by five OTC Derivatives Clearing Participants of JSCC
    (namely Daiwa Securities Capital Markets Co., Ltd., Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Mizuho Securities Co., Ltd., Morgan Stanley MUFG Securities Co., Ltd. and Nomura Securities Co., Ltd.)
    As stated in a) above, the main financial regulator in Japan is Japanese FSA.

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