OTC Japanese Government BondsCovering of GX JGB as Eligible for Clearing
JGB OTC Transaction Clearing Service starts to cover “Climate Transition Interest-bearing Government Bonds” (GX JGB), which Japanese Government plans to issue, as bonds eligible for clearing. Handling of Clearing of GX JGB will start on the first auction date of February 14, 2024, covering Buying and Selling, Cash-secured Bond Lending Transactions, Standard Repo Transactions and Subsequent Collateral Allocation Repo Transactions. Please refer to the description below for the handling of GX JGB.
Handling of GX JGB as Eligible for Clearing
| Item | Handling of GX JGB as Eligible for Clearing |
|---|---|
| Clearing | Handled as Interest-bearing JGB |
| Risk Management | Handled as Interest-bearing JGB (calculation for a variety of items, such as Initial Margin/Clearing Fund) |
| Substitute Deposit | Handled as Interest-bearing JGB (same handling applies to collateral haircut) |
| Basket for Subsequent Collateral Allocation Repo Transactions | Set new basket category of LargeGX and AllGX |
| Fee | Handled as Interest-bearing JGB (no special fee structure is set) |
Basket for Subsequent Collateral Allocation Repo Transactions
The following two Baskets are newly set.
・LargeGX
・AllGX
<Issue Code of Basket>
| Basket | Bond Issue Code (domestic code) | ISIN code |
|---|---|---|
| LargeGX | 02030099 | JP1992039006 |
| AllGX | 02050099 | JP1992059004 |
Please refer to the below link of Securities Identification Code Committee. (Japanese version only)
<Scope of Basket Allocation>
