Japan updates sec lending facility
23 March 2015 Tokyo
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The Bank of Japan is to implement a number of operational changes to its securities lending facilities in order to ease stress in the Japanese government security market.
The changes have also been adopted with a view to further facilitating the Bank of Japan's money market operations and contributing to the smooth settlement of government security market.
As of 23 March 2015, the upper limit to the amount of sales per issue will be raised to the amount outstanding of the Bank of Japan's holdings or 400 billion JPY ($3.3 million), whichever is smaller.
Offers made in the afternoon will follow the same rules but exclude any amount sold in the morning.
The number of business days permitted for consecutive sales transactions per issue with the same counterparty will also be extended.
Counterparties will now be permitted to consecutively purchase the same issue from the Bank of Japan for a maximum of fifteen business days, up from five in the previous incarnation.
As before, this period may be extended for consecutive sales transactions per issue when deemed necessary in light of the conditions of financial markets.
The changes have also been adopted with a view to further facilitating the Bank of Japan's money market operations and contributing to the smooth settlement of government security market.
As of 23 March 2015, the upper limit to the amount of sales per issue will be raised to the amount outstanding of the Bank of Japan's holdings or 400 billion JPY ($3.3 million), whichever is smaller.
Offers made in the afternoon will follow the same rules but exclude any amount sold in the morning.
The number of business days permitted for consecutive sales transactions per issue with the same counterparty will also be extended.
Counterparties will now be permitted to consecutively purchase the same issue from the Bank of Japan for a maximum of fifteen business days, up from five in the previous incarnation.
As before, this period may be extended for consecutive sales transactions per issue when deemed necessary in light of the conditions of financial markets.
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