Electronic trade processing service MarkitSERV is now transmitting yen rates trades to Japan Securities Clearing Corporation (JSCC) through its global network.
The JSCC began clearing Japanese yen interest rate swaps and basis swaps on 9 October, and through MarkitSERV more than 20 global and regional bank entities using JSCC’s service can now affirm transactions and submit eligible interest rate swaps for clearing.
“MarkitSERV’s expertise enabled us to successfully introduce clearing to the yen rates market in advance of regulatory mandates that take effect this November in Japan,” said Yasushi Suzuki, managing director at JSCC. “In addition, its global network makes our service accessible not only to domestic Japanese banks but also to major players in the OTC derivatives market globally.”
JSCC is the first Asia-based clearing organisation to clear yen-denominated interest rate swaps. By clearing volume, it has already become the largest clearing venue in the region for OTC financial derivatives with an estimated ¥6 trillion in yen-denominated swaps transacted each day in the OTC derivatives market globally.
“We are proud to be a primary trade source for JSCC and to help support the success of central clearing of OTC derivatives in Japan,” said Henry Hunter, head of product management at MarkitSERV. “Worldwide, there is consensus that central clearing is important for the OTC derivatives markets and with one connection to MarkitSERV, market participants can access the CCP of their choice.”
MarkitSERV is also used by JSCC for its credit default swaps clearing service.
CCPs to which MarkitSERV is connected include CME, CME Clearing Europe, Eurex, ICE Clear Credit, ICE Clear Europe, ICE Clear US, LCH.Clearnet (CDSClear, ForexClear and Swapclear), Nasdaq OMX, OCC and Singapore Exchange.