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>
Revision of Baskets for Subsequent Collateral Allocation Repo Transactions
Baskets for Subsequent Collateral Allocation Repo Transactions will be revised as shown below.
＜Revision of allocable collaterals for certain Baskets＞
・ From the Collateral Allocation on the effective date of the revision (June 25, 2026 (Thu.)), GX JGB will be added to the allocable collaterals for “U10,” “Fixed”, “Large ” and “All”.
＜Abolishment of certain Baskets＞
“LargeGX” and “AllGX” will no longer be eligible for new clearing from the effective date of the revision (June 25, 2026), in principle. When trading Baskets that include GX JGB, please switch the Basket to be traded to the appropriate one according to the following manner.
・Transactions involving “LargeGX” and “AllGX” that were cleared by the immediately preceding business day of the revision effective date will continue to be subject to the conventional Collateral Allocation/settlement until their End date.
・Codes and other identifiers of “LargeGX” and “AllGX are scheduled to be abolished on or after the business day immediately following “the date designated by JSCC” (currently planned to be August 25, 2026 (Tue.)).
