Trade Reporting in Japan – Japanese SCM Branches of Non-Japanese SwapClear Clearing Members

As part of LCH.Clearnet Limited’s (“LCH”) application for a clearing license in Japan, LCH will be required to report to the Japanese Financial Services Authority (the “JFSA”) details of all non-Yen SwapClear Transactions that are executed through the Japanese SCM Branch of a SwapClear Clearing Member. Where a SwapClear Clearing Member has an SCM Branch operating in Japan and it does not wish for LCH to report details of all of its SwapClear Transactions to the JFSA, then it must provide LCH with of one of the following:

• Confirmation that it does not execute any SwapClear Transactions through its Japanese branch i.e. the Japanese Branch  doesn’t enter into any transactions that are subsequently presented for clearing at LCH (such that no SwapClear Transactions will be reported to the JFSA by LCH); or
• Details of the mnemonic through which the relevant SwapClear Clearing Member executes all of the SwapClear Transactions of its Japanese SCM Branch (such that only the SwapClear Transactions associated with that mnemonic will be reported to the JFSA by LCH).

Please contact swapclearmembershipsales@lchclearnet.com to provide information in response to the above or if you have any questions.

LCH’s Japanese clearing license remains subject to regulatory approval. Terms used in this circular and not defined in this circular have the meaning assigned in the Rulebook of LCH.Clearnet Limited. For the purposes of this circular, a SwapClear Clearing Member shall include an FCM Clearing Member.