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Clearing Fund

  • JSCC requires each Clearing Participant to contribute to a Clearing Fund which covers potential future exposure in the case of the default of multiple Clearing Participants in extreme but plausible market conditions, for each Clearing Business. When Clearing Participant defaults, clearing fund by Survivors might be used.
  • Because of the “jump-to-default” risk (risk of a reference entity experiencing a credit event) involved in CDS, default expectations are set to the 2 largest Clearing Participants, while expectations are set to the 1 largest Clearing Participant at minimum for other products.
  • The required amount for the Clearing Fund of each Clearing Business is revised on either a weekly or monthly basis, in accordance with the risk amount of the relevant business.

Cash Products Clearing Fund

Listed Derivatives Clearing Fund

CDS Clearing Fund

IRS Clearing Fund

OTC JGB Clearing Fund