GFI Group has joined a working group set up in May by the Japan Securities Clearing Corp. (JSCC) and Tokyo Stock Exchange to design a central counterparty to clear over-the-counter derivatives.
The JSCC and TSE Working Group, set up in accordance with a report released from the Study Group on post-trade processing of OTC derivatives trades on March 27, is comprised of 16 members. GFI Group, through its subsidiary GFI Securities Limited – Tokyo Branch, is the only inter-dealer broker serving in the Working Group. Other members are Japanese and international banks and securities houses.
The objective of the Group is to create a central counterparty functionality for the purpose of launching a clearing service for interest rate swaps and credit default swaps. The JSCC will develop clearing operations for OTC derivatives trades based on the conclusions of the Working Group.