Japan’s Financial Services Agency (FSA) has granted Eurex Clearing a license as a “foreign financial instruments clearing organisation”. This extends Eurex’s central counterparty clearing services in the European Union and US, to include Japan as well.
With the new license, Japanese financial institutions can directly access Eurex for swap clearing and combine their listed and OTC euro yield curve business in a single place.
“It’s an honour to be granted a license for a country which is one of the largest non-EU holders of European debt instruments. I would like to express my gratitude to the Japanese FSA and its staff for supporting us in this licensing process,” says Erik Müller, CEO of Eurex Clearing. “With this step, we further geographically expand our service offering into Asia and underline our commitment to becoming the global home of the euro yield curve.”
Christopher Perkins, global head of OTC clearing and foreign exchange prime brokerage at Citi, adds: “Citi is very pleased to extend our unique and differentiated cleared swap connectivity on Eurex to the Japanese market. We look forward to working with Eurex to onboard new clients in Japan.”
Access to the Japanese market is a logical next step for Eurex Clearing to expand its liquidity pool, says Eurex in a statement. Japanese institutions are very active in European fixed income futures on Eurex and have also significant exposure in the Euro swap market, it adds. In addition, Japan is one of the largest ETD and OTC derivatives markets globally.