JSCC reviews capital threshold for clearing membership
Japan’s central counterparty proposes a 20-fold lower capital threshold for membership for it to qualify as a recognised clearing house under US rules; it also started successfully clearing yen interest rate swaps as of last week
The Japan Securities Clearing Corporation (JSCC) plans to lower the capital threshold for clearing house membership from ¥100 billion ($1.3 billion) in net assets to ¥5 billion, in order to qualify as a derivatives clearing organisation (DCO) under US rules and allow derivatives clearing with US entities and between US entities.
In November last year, the Commodity Futures Trading Commission finalised rules stipulating that a clearing house should not set capital requirements above $50 million –
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