The Tokyo Financial Exchange will delay its plans to develop a new central counterparty (CCP) clearing house until it is clear what laws Japan passes to govern clearing of over the counter derivatives.
In April 2009 TFX said it would introduce a clearing house for OTC credit default swaps and interest rate swaps in 2010, based on recommendations from its market participation committee. The service would have begun with simple interest rate swaps and CDS contracts linked to the iTraxx Japan index, with exotic interest rate products and single name CDS to be launched later.
Shozo Ohta, TFX’s president and CEO, told Futures and Options Intelligence this week that proposals for OTC clearing from Japan’s Financial Services...