LCH.Clearnet licenced to clear interest rate derivatives in Japan

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  • Japanese Financial Services Agency approves LCH.Clearnet Ltd to clear non-Yen OTC interest rate derivatives for Japanese banks
  • Demonstrates LCH.Clearnet’s long-term commitment to Japan and the wider Asia-Pacific region
  • First foreign financial markets infrastructure provider to be licensed locally in Japan

LCH.Clearnet Ltd (“LCH.Clearnet”), the global clearing house, announced today that it 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.

For further information

Lucie Holloway, Tel: +44 (0)20 7797 1126

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About LCH.Clearnet

The LCH.Clearnet Group is a leading multi-asset class and multi-national clearing house, serving major exchanges and trading platforms as well as a range of OTC markets.

LCH.Clearnet’s world-class risk management framework provides exceptional levels of protection to international markets, as has been proven through the management of past defaults. As demand for robust clearing services continues to grow, LCH.Clearnet is committed to achieving the highest standards of risk management across all asset classes cleared.

LCH.Clearnet Group is majority owned by London Stock Exchange Group (LSE.L), a diversified international market infrastructure group that sits at the heart of the world's financial community.