home > Risk Management > Governance

Risk ManagementGovernance

Governance

  • All of JSCC’s clearing activities take place within four Clearing Business units: Listed Products, CDS, IRS, and OTC JGB. Each Clearing Business maintains its own capital and share class, with business decisions made according to resolutions by the general shareholders meeting and class-shareholders meeting.
  • JSCC’s Board of Directors oversees all of JSCC’s business activities and is accountable to its shareholders. Directors that represent the opinions of each Clearing Business are nominated to the Board of Directors. The Articles of Incorporation include provisions requiring directors to respect the opinions of each Clearing Business’s advisory committee in order to establish proper governance.
  • The names and roles of the advisory committees for each of JSCC’s Clearing Businesses are as follows:

Disciplinary Measures Assessment Committee

  • In cases where JSCC exercises its authority under the Business Rules of each Clearing Business to take necessary measures against Clearing Participants, JSCC shall seek advice from the Disciplinary Measures Assessment Committee. The committee possesses the necessary knowledge and experience regarding relevant laws, accounting standards, and the market and is composed of members that are independent from JSCC and Clearing Participants.

User Committee

  • This committee serves to provide an understanding of Clearing Participants’ demands related to the Listed Products Clearing Business, ensure JSCC’s rules and operations reflect the opinions of Clearing Participants from an operational perspective, and discuss rules and operational matters in response to inquiries from the Board of Directors. Committee members are selected by the CEO from all Clearing Participants, taking into consideration member diversification including the type and scale of their business.

Listed Products Risk Management Committee

  • This committee deliberates on risk management matters related to the rules, margin rules, and default management processes of the Listed Products Clearing Business in response to inquiries from the Board of Directors. Committee members are selected by the CEO from among personnel at Clearing Participants and institutional investors, as well as experts on topics under deliberation.

CDS Risk Management Committee / IRS Management Committee / OTC JGB Management Committee

  • These committees deliberate on proposed changes to the Business Rules and other rules of their respective Clearing Businesses in response to inquiries from the Board of Directors. The committees are composed of Clearing Participants and shareholders.

JSCC Determination Committee

  • This committee determines matters for the CDS Clearing business, including matters concerning Credit Events and Succession Event. Committee members are selected from Clearing Participants.

CDS Default Management Committee / IRS Default Management Committee / OTC JGB Default Management Committee

  • These committees offer advice on matters such as hedging when the default of a Clearing Participant is determined and bidding during default auctions. Members of these committees are selected from Clearing Participants.

Company Organization

Company Organization