Eurex Clearing has been granted a licence as a “foreign financial instruments clearing organisation” by Japan’s Financial Services Agency (FSA), allowing the (CCP) to expand its clearing services into the country.
Eurex’s decision to pursue a licence in Japan, which has one of the largest fixed income markets, was driven by client demand, the company said in today’s statement. With the new licence, Japanese financial institutions will be able to directly access Eurex for swap clearing.
Furthermore, firms will be able to combine their listed and over the counter (OTC) euro yield curve business in one place. The expansion into Japan will support the CCP’s EU-based liquidity pool for Euro Swaps.
Source: Deutsche Börse AG
“I would like to express my gratitude to the and its staff for supporting us in this licensing process. With this step, we further geographically expand our service offering into Asia and underline our commitment to becoming the global home of the euro yield curve.”
Japan was next logical step for Eurex Clearing
According to the statement released today, gaining access to the Japanese market was the next logical step for Eurex Clearing as part of its strategy to expand its liquidity pool. This is due to Japanese institutions being very active in European fixed income futures on Eurex, plus it having one of the largest OTC derivatives markets globally.
Christopher Perkins, Global Head of OTC Clearing and Foreign Exchange Prime Brokerage at Citi added: “Citi is very pleased to extend our unique and differentiated cleared swap connectivity on Eurex to the Japanese market. We look forward to working with Eurex to onboard new clients in Japan.”
Eurex Clearing to Expand into Japan, Secures Licence from FSA
Published in Analysys
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