Japan Securities Clearing Corporation partners with State Street on USD cash collateral
10 January 2025 Japan
Image: SeanPavonePhoto/stock.adobe.com
Japan Securities Clearing Corporation (JSCC) has added USD cash to the eligible collaterals in its IRS Clearing Service, with the help of State Street.
Following the “trust establishment” with State Street Trust Bank (SSTB), USD cash collateral posted by clearing participants and customers will be managed on a daily basis through the sponsored repo transactions.
The structure of sponsored repo was jointly developed by State Street Bank and Trust, the parent company of SSTB, and the Fixed Income Clearing Corporation (FICC) in the US.
Commenting on the announcement, Konuma Yasuyuki, JSCC president and CEO, says: “An addition of USD cash to eligible collaterals in IRS Clearing Service is a very big milestone for JSCC providing clearing services to clearing participants and their customers active globally.
“Amid rising calls for CCPs’ safe custody and efficient management of collaterals globally, we are confident that State Street's USD cash collateral management service will realise great value for our users in Japan and overseas.”
Akiko Terada, representative director and president of SSTB, adds: “The sponsored repo transaction provided by us is an innovative investment scheme which will bring more sophisticated credit management and risk control to the Japanese market.
“The scheme also meets US Treasury repo clearing requirements which is scheduled to be introduced by the US Securities and Exchange Commission (SEC) in June 2026.”
Following the “trust establishment” with State Street Trust Bank (SSTB), USD cash collateral posted by clearing participants and customers will be managed on a daily basis through the sponsored repo transactions.
The structure of sponsored repo was jointly developed by State Street Bank and Trust, the parent company of SSTB, and the Fixed Income Clearing Corporation (FICC) in the US.
Commenting on the announcement, Konuma Yasuyuki, JSCC president and CEO, says: “An addition of USD cash to eligible collaterals in IRS Clearing Service is a very big milestone for JSCC providing clearing services to clearing participants and their customers active globally.
“Amid rising calls for CCPs’ safe custody and efficient management of collaterals globally, we are confident that State Street's USD cash collateral management service will realise great value for our users in Japan and overseas.”
Akiko Terada, representative director and president of SSTB, adds: “The sponsored repo transaction provided by us is an innovative investment scheme which will bring more sophisticated credit management and risk control to the Japanese market.
“The scheme also meets US Treasury repo clearing requirements which is scheduled to be introduced by the US Securities and Exchange Commission (SEC) in June 2026.”
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