Futures and OptionsPosition Transfer System

Position Transfer System

JSCC introduced Position Transfer System to improve the convenience of futures and options transactions by reducing margin requirements and office expenses for settlement-related operations.

  • 1.What is a Position Transfer System?
  • 2.Advantages of a Position Transfer System
  • 3.Operational Flow for Position Transfer
  • 4.Notice

1.What is a Position Transfer System?

A Position Transfer System allows a Transferring Clearing Participant*1 to transfer Futures/Options unsettled positions to a Transferee Clearing Participant*2, with prior JSCC approval.

*1 A Transaction Clearing Participant who transfers unsettled positions.

*2 A Transaction Clearing Participant who takes over unsettled positions from the Transferring Clearing Participant.

2.Advantages of a Position Transfer System

A customer can consolidate positions that the customer holds with Transaction Participant A, Transaction Clearing Participant B and Transaction Clearing Participant C, to Transaction Clearing Participant C, as under the Give-Up System. It enables not only a reduction in margin requirements but also in office expenses.

Basic Structure of Clearing & Settlement System

3.Operational Flow for Position Transfer

  • (1)Application for Position Transfer by Customer (Flow in CHART 7)
    A customer applies for Position Transfer with a Transferee Clearing Participant and a Transferring Clearing Participant.
  • (2)Notification of Position Transfer by Transferring Participant to JSCC (Flow in CHART 7)
  • (3)Acceptance of Position Transfer by Transferee Participant to JSCC (Flow in CHART 7)
  • (4)Approval of Position Transfer (Flow and in CHART 7)
    In case JSCC receives acceptance prescribed in (3) from the Transferee Clearing Participant and approves it,Position Transfer is executed.
  • (5)Deposit of Margin, etc. (Flow in CHART 7)

Settlement-related operation is conducted between the customer and the Transferring Clearing Participant
after the Position Transfer.

4.Notice

  • Deadline for Position Transfer

A customer applies for Position Transfer to a Transferring Clearing Participant by the time designated by the Transferring Clearing Participant and the Transferee Clearing Paticipant.