The Financial Services Agency of Japan (FSAJ) recently granted the Depository Trust & Clearing Corporation (DTCC) permission to create a trade repository for the purpose of reporting data from OTC derivatives transactions, according to a statement released on March 12, 2013.
This new Tokyo-based facility is the first one to be approved by the FSAJ for use in clearing trades in that market, and will be fully operational before April 1, 2013, which is when traders in the jurisdiction will be required to report their OTC derivatives trades to either trade repositories or government agencies.
Mandatory clearing has already been implemented in the U.S. for transactions involving certain swaps contracts, where market participants became obligated to process transactions of OTC derivatives in this manner starting on March 11, 2013. The U.S. Commodity Futures Trading Commission released a statement on that day, indicating the new change was in place.
"DTCC is pleased to be able to deliver to regulatory authorities and market participants in Japan a comprehensive, robust trade repository that brings greater transparency and risk mitigation to the OTC derivatives markets," Michael Bodson, chief executive officer of the DTCC, said in the statement.
◦ Asset Liability Management
◦ Portfolio Risk
◦ Sensitivities & Hedging
◦ Stress Testing & Scenario Analysis