Osaka Exchange: Partial Revisions To The Clearing And Settlement Regulations, Etc. In Connection With The Expansion Of The User Range Of Cross Margining At JSCC

Osaka Exchange, Inc. (OSE) will partially revise the Clearing and Settlement Regulations, etc. in connection with the expansion of the user range of at Japan Securities Clearing Corporation (JSCC), which is aimed at reducing the burden on IRS Clearing Participants for collateral obligations by enabling offsetting of risks related to JGB futures and IRS.

I. Outline of Revisions

1. Application of Interest Rate Swap Clearing Business Rules related to JGB Futures Position Transfer, etc.
・ JGB Futures Position Transfer by a user of cross margining shall be subject to the provisions of Interest Rate Swap Clearing Business Rule of JSCC.
・ Designation of JGB Futures Backup Clearing Broker shall be subject to the provisions of Interest Rate Swap Clearing Business Rule of JSCC.

2. Others
・ Other necessary revisions will be made.

II. Implementation Date

The revisions will be implemented on January 30, 2017. However, if OSE deems it inappropriate due to unavoidable reasons, such as a malfunction in the trading system, the implementation date will be changed. In such case, OSE will specify a later date for implementation.