In January 2003, Japan Securities Clearing Corporation ( JSCC) was licensed as the first clearing house in Japan to conduct a “Securities Obligation Assumption Service” (current “Financial Instruments Obligation Assumption Service” stipulated in the Financial Instruments and Exchange Act) and commenced clearing services for transactions executed on stock exchanges.
In addition to listed products, JSCC currently provides clearing services for Over-the-Counter (OTC) derivatives (Credit Default Swaps (CDS) and Interest Rate Swaps (IRS)) and OTC Japanese Government Bond ( JGB) transactions, and is working to expand services for foreign users.
|July 2002||Established jointly by 5 Japanese stock exchanges and the Japan Securities Dealers Association|
|January 2003||Licensed to conduct the Securities Obligation Assumption Service (now known as Financial Instruments Obligation Assumption Service) and commenced cash transactions clearing for all domestic securities exchanges|
|February 2004||Commenced Tokyo Stock Exchange-listed derivatives clearing|
|July 2010||Commenced Proprietary Trading System (PTS) clearing|
|July 2011||Commenced Credit Default Swaps (CDS) clearing|
|October 2012||Commenced Interest Rate Swaps (IRS) clearing|
|July 2013||Migrated Osaka Securities Exchange listed derivatives clearing to JSCC|
|October 2013||Merged with Japan Government Bond Clearing Corporation|
|April 2015||Received ESMA recognition as Third-Country CCP|
|September 2015||Designated as Prescribed CCP in Australia|
|October 2015||Obtained Exemption from Registration as Derivatives Clearing Organization from CFTC|
|September 2016||Authorization as ATS-CCP and Designated CCP in Hong Kong|
On the basis of trading value of domestic stocks in each market at that time, the TSE, which is the largest in the market size, owns 86.3% of its total shares capitalizing at JPY 3 billion. The OSE and the JSDA(Jasdaq Securities Exchange, Inc.(JSE) from Dec. 2004) hold 9.5% and 3.4%, respectively.（From Apr.2010,The OSE holds 12.9% by the merger with JSE.) Remaining shares are held by the NSE, the SSE and the FSE. For a quick start-up of the business, the JSCC started operations utilizing the infrastructure and methodology of TSE’s clearing system.
To fulfill its important mission as the main infrastructure of the Japanese capital markets and to reflect users’ needs to the management, the majority of its board of directors consists of representatives from users (securities companies) and other neutral party.
Newly established JSCC is a completely different entity from former JSCC, which changed its company name to Japan Securities Settlement & Custody, Inc. (JSSC).
In January 2003, the JSCC started its operation as the first licensed securities clearing organization under the Securities and Exchange Act in Japan (the Act). JSCC is supervised by the Financial Service Agency (FSA) in accordance with the Act.
For settlement of domestic shares, the JSCC opens a settlement account with the Japan Securities Depository Center, Inc. (JASDEC, the central securities depository of Japan) to make use of its Central Securities Depository and Book-Entry Transfer System, while settlement of funds are carried out through account transfers between a participant account and a JSCC account at either six fund settling banks (all of which are commercial banks) or Bank of Japan (BOJ, the central bank of Japan).
In addition to cash products traded at all Japanese stock exchanges, the JSCC has started to act as a CCP for derivatives traded at the TSE since Feb. 2004. (As a result, the JSCC acts as a CCP for all trades (cash and derivatives) conducted on the TSE market.)