Error Fears Recede For New Japanese Bond Settlement System RTGS

TOKYO -- Fears eased somewhat in February that the introduction of the real-time gross settlement system (RTGS) into the Japanese government bond market would be plagued by errors and settlement failures.

The Japanese central bank took two steps to assuage the fears of traders -- it is publishing settlement-failure data and is also effectively capping very short-term interest rates to help ensure liquidity.

RTGS was introduced in early January this year because it is deemed to be operationally

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