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) |
| Fee | Handled as Interest-bearing JGB (no special fee structure is set) |
<Allocable Collaterals in Baskets>
<Establishment and Revision of Baskets along with Addition of Bonds Eligible for Clearing>
On February 14, 2024, along with a coverage of GX JGB as the bonds eligible for clearing, two new Baskets for the Subsequent Collateral Allocation Repo Transaction, namely “Large GX” and “All GX,” were set. In light of the market trend thereafter, on June 25, 2026, GX JGB was added to the Allocable Collaterals for “U10,” “Fixed,” “Large” and “All,” and, on August 26, 2026, the Baskets, “Large GX” and “All GX,” were abolished.
