About JSCCMessage from the President
In January, 2003, Japan Securities Clearing Corporation (JSCC) was the first clearing organization licensed in Japan to conduct the CCP clearing under the Securities and Exchange Law (now called Financial Instrument Obligation Assumption Service based on the Financial Instruments and Exchange Law) and started Clearing cash transactions on Japanese Stock Exchanges. The commencement of JSCC’s Clearing Business combined the clearing of cash transactions, which used to be handled by each exchange, and dramatically improved the safety and efficiency of the clearing and settlement processes.
Subsequently, JSCC added Derivatives transactions at Tokyo Stock Exchange and cash transactions at PTS (Proprietary Trading System) to its clearing business in February 2004 and July 2010, respectively. Commencement of derivatives transactions executed on Osaka Stock Exchange, which is scheduled on July this year, will realize market-wide clearing.
Also, with respect to OTC derivatives transactions which are used to be settled bilaterally, JSCC started clearing CDS transactions and IRS transactions in July 2011 and October 2012, respectively, in line with global initiatives to improve market safety and transparency following the recent financial crises. are considered to be a global top priority. IRS transactions, clearing volumes are steadily increasing; outstanding balances have reached over JPY 320 trillion. We greatly appreciate great supports and efforts provided by all the parties concerned.
Furthermore, the merger with the Japan Government Bond Clearing Corporation (JGBCC) who provides clearing for OTC JGB transactions, scheduled for October this year, will enable JSCC to provide clearing services for a wide range of products and markets, from stock exchange to OTC transactions, in an integrated manner.
It’s been 10 years since JSCC started its clearing business. Increase in complexity and diversity of financial instruments, JSCC recognizes its contribution to the efficiency, serviceability and safety of the markets and will therefore endeavor to continue to the further enhancement of competitiveness and the development of the Japanese financial and capital markets.
We greatly appreciate your understanding and continued support.
President and CEO
Japan Securities Clearing Corporation