Japan Securities Clearing Corporation (“JSCC”) added USD cash to the eligible collaterals in its IRS Clearing Service.
USD cash collateral posted by Clearing Participants and Customers will be, after the trust establishment at State Street Trust Bank (“SSTB”), managed on a daily basis through the sponsored repo transactions, the structure of which was jointly developed by State Street Bank and Trust Co., the parent company of SSTB, and Fixed Income Clearing Corporation (FICC) in the United States.
JSCC President and CEO Konuma Yasuyuki commented on this initiative as follows:
“An addition of USD cash to eligible collaterals in IRS Clearing Service is a very big milestone for JSCC providing clearing services to Clearing Participants and their customers active globally. Amid rising calls for CCPs’ safe custody and efficient management of collaterals globally, we are confident that State Street’s USD cash collateral management service will realize great value for our users in Japan and overseas. “
Akiko Terada, Representative Director and President of SSTB said, “We are very grateful for the opportunity to collaborate with and support JSCC on this important financial services infrastructure in Japan. The sponsored repo transaction provided by us is an innovative investment scheme which will bring more sophisticated credit management and risk control to the Japanese market. The scheme also meets U.S. Treasury repo clearing requirement which is scheduled to be introduced by the U.S. Securities and Exchange Commission (SEC) in June 2026. We look forward to supporting market participants in Japan unlocking greater benefits.”
JSCC will strive for safe and efficient operation of its clearing services to contribute to convenience of the market participants.
Source: JSCC
We are pleased to support Japan Securities Clearing Corporation (JSCC) on the addition of US dollars as qualified collateral for interest rate swap clearing. State Street Trust and Banking Co., Ltd. in Japan will be the trustee of the US dollar collateral deposited by the… pic.twitter.com/S6j9smCfip
— State Street (@StateStreet) January 9, 2025
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