In the current financial crisis, problems relating to OTC derivatives transactions have been highlighted and the need to strengthen regulations has been discussed worldwide. In order to facilitate a stable transaction framework with reduced systemic risk, Central Counterparties (CCP) for OTC derivatives transactions have been established in both Europe and the U.S.A.
Under these circumstances, Tokyo Financial Exchange Inc. (TFX), which is the only exchange in Japan that specializes in trading and clearing financial derivatives, and whose clearing members have extremely high credit quality, organized a study committee on establishing a CCP for OTC derivatives transactions in Oct. 2009. The study committee has met regularly with the support of market participants and specialists.
TFX has published a summary of the discussions held during the study committee sessions. This summary contains information on the content of these discussions and the resulting strategy of TFX.