Japan: Initial margins on OTC clearing of forex swaps not desirable
Japan questions the current framework for clearing foreign exchange derivatives
Foreign exchange swaps should not attract an initial margin, says Japan's vice-minister of finance for international affairs, Takehiko Nakao, raising the possibility the country might follow the US in exempting this part of the over-the-counter derivatives market.
In November, the US Treasury announced it would exempt forex swaps and forwards from mandatory clearing and exchange trading rules under the Dodd-Frank Act. Speaking at the Asian Financial Forum in Hong Kong, Nakao echoed the US
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