JSCC Announces Direct Connectivity with Tradeweb’s SEFs and MTFs to Revolutionize Straight Through Processing for JPY Interest Rate Swaps

Japan Securities Clearing Corporation (JSCC) is pleased to announce the establishment of a direct connection with the MTFs and SEFs*1 of Tradeweb, a leading global operator of electronic marketplaces for rates, credit, equities and money markets. This brand-new connectivity enables seamless access to JSCC’s clearing services immediately after the execution of JPY Interest Rate Swaps (IRS) on the Tradeweb SEF and MTF platforms, without any affirmation process.

In light of recent shifts in monetary policy within the JPY rate market, the monthly clearing volume for JPY IRS at JSCC reached a record-high of 1,060 trillion yen (double-sided, the same hereinafter) in December 2024*2, surpassing the milestone of 1,000 trillion yen. Additionally, the yearly clearing volume for 2024 soared to 8,272 trillion yen, more than doubling the previous highest record of 4,025 trillion yen set in 2023, hitting another all-time high. These remarkable achievements clearly show the growing need for JSCC’s JPY IRS clearing services by a broader base of users, including the international buy side who use the Tradeweb SEFs and MTFs for swap execution.

In response to this growing demand from international users, including hedge funds and banks, to clear JPY IRS transactions executed on SEFs/MTFs, JSCC has continued to enhance Straight Through Processing (STP) for JPY IRS clearing, such as eliminating the take-up process in September 2023. The roll-out of a direct connection between JSCC and the Tradeweb SEFs and MTFs further marks a revolutionary enhancement in STP from trade execution to clearing, significantly strengthening the efficiency and reliability of JSCC`s IRS clearing service.

Yasuyuki Konuma, President & CEO of JSCC, commented, “I am confident that this collaboration with Tradeweb reinforces the convenience and efficiency of the overall JPY IRS market. As the demand for electronic trade execution and STP continues to grow, we are committed to continuously improving our services to contribute to the further development of the Japanese derivatives market, where swap users can freely trade and clear with each other in the most liquid market for JPY IRS.”

*1 SEF: Swap Execution Facility under U.S. regulation
MTF: Multilateral Trading Facility under EU and UK regulations
*2 See JSCC‘s announcement on 6th January, 2025: Record-Breaking Monthly and Yearly Volume in Clearing Service for Interest Rate Swap


About JSCC
In January 2003, JSCC was licensed in Japan as the first clearing organization for cash equity transactions executed on Japanese Stock Exchanges. The birth of JSCC enabled the integration of clearing processes that used to be performed separately by individual stock exchange, dramatically improving the efficiency and serviceability of the post-trading processing in securities markets. Since its start, JSCC has steadily expanded the scope of its services, and now, in addition to listed cash and financial /commodity derivatives, JSCC currently provides clearing services for OTC derivatives (credit default swaps and interest rate swaps) and OTC Japanese Government Bond transactions for outright and repo.