International clearing house LCH.Clearnet Ltd announced today that it has obtained approval for a clearing licence from the Japanese Financial Services Agency (FSA).
The licence allows LCH.Clearnet to clear non-Yen OTC interest rate derivatives, on behalf of local banks based in Japan through its SwapClear service. Before LCH.Clearnet gained this licence, Japanese banks were able to access SwapClear’s clearing services through their international subsidiaries.
Suneel Bakhshi, Group CEO of LCH.Clearnet, says,
“We are delighted that the FSA has awarded LCH.Clearnet a licence to clear interest rate derivatives in Japan. Tokyo is an important global financial centre and home to one of the largest OTC derivatives markets in the world. By providing our clearing service to Japanese financial institutions, we hope to strengthen further Tokyo’s position as a global player in derivatives.
“We’ve seen significant demand for our services as firms seek to benefit from the efficiencies that come with clearing and associated services such as compression. We are fully committed to becoming integrated into the Japanese market and are proud to be the first overseas clearing house to be awarded a Japanese licence.”
For the full announcement from LCH.Clearnet, click here.