The Tokyo Financial Exchange will consider launching a clearing service for over-the-counter interest rate swaps and credit default swaps. It was advised to do so by a working group it had set up to examine opportunities for OTC clearing.
The working group recommended that TFX should seek “cooperation” with LCH.Clearnet to facilitate interest rate clearing.
The Anglo-French clearing house said there had been no specific discussions between the two parties yet.
The committee of Japanese market participants was engaged by TFX in October 2008 after the collapse of Lehman Brothers, when there was widespread public attention to the risks of counterparty defaults in the OTC derivative markets.
A summary of its findings published yesterday (April 15) proposed that TFX launch an on-exchange clearing service...