Key facts
- Ten US investment firms are now clearing yen swaps through the Japan Securities Clearing Corporation (JSCC).
Ten US investment firms, including Citadel and Millennium, now represent 25% of client-cleared yen interest rate swaps at Japan Securities Clearing Corporation. This influx began after US regulators allowed access to the Tokyo-based counterparty in September.
The increased participation of US funds in Japanese yen interest rate swaps at JSCC suggests a strategic shift in how these firms manage their exposure to Japanese debt markets, potentially influenced by yield differentials and regulatory changes. This could impact liquidity and pricing in both the Japanese government bond (JGB) and yen swap markets.
Ten US investment firms, including prominent names like Citadel, Elliot, and Millennium, have significantly increased their activity in yen interest rate swaps cleared through the Japan Securities Clearing Corporation (JSCC). These funds now constitute 25% of the client-cleared yen swaps at the Tokyo-based central counterparty. This surge in participation began in September, following a decision by US regulators, specifically the Commodity Futures Trading Commission (CFTC), to permit these funds access to the JSCC. The move indicates a growing trend of US financial institutions engaging with Japanese derivatives markets.