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LCH.Clearnet licenced to clear interest rate derivatives in Japan

First Published 11th April 2016

Japanese Financial Services Agency approves LCH.Clearnet Ltd to clear non-Yen OTC interest rate derivatives for Japanese banks.

LCH.Clearnet has received approval for a clearing licence from the Japanese Financial Services Agency (FSA). The granting of the licence enables LCH.Clearnet to clear non-Yen OTC interest rate derivatives*, on behalf of local banks based in Japan through its SwapClear service. The new licence will bring further integration of the global Interest Rate Swap market into Japan.

Prior to LCH.Clearnet gaining this licence, Japanese banks were only able to access SwapClear's clearing services through their international subsidiaries.

Suneel Bakhshi, Group CEO, LCH.Clearnet: "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."

*The licence allows LCH.Clearnet to offer clearing of non-Yen OTC interest rate derivatives to Japanese financial institutions.