The U.S. Commodity Futures Trading Commission (CFTC) is asking for public comment on a petition by Japan Securities Clearing Corporation (JSCC) for exemption from registration as a derivatives clearing organization (DCO).
The Commission is considering a petition for exemption from registration based on its authority under Section 5b(h) of the Commodity Exchange Act, which permits the CFTC to exempt a clearing organization from DCO registration for the clearing of swaps to the extent that the CFTC determines that such clearing organization is subject to comparable, comprehensive supervision by appropriate government authorities in the clearing organization’s home country.
Japan has very sophisticated clearing systems, as just released news shows – the JSCC announced its decision to start operations of their new OTC clearing system Phase 4.0 on Thursday, September 24th, as scheduled, based on the go-live just approved.
Comments should be submitted on or before October 2, 2015.
Comments may be submitted electronically through the CFTC’s comments online process.
Public portions of the petition and all comments received are available on the CFTC’s website.