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Clearing ParticipantsProcedure of Clearing Qualification Acquisition

Clearing Participant

  • A person who becomes the other party to the Financial Instruments Obligation Assumption Service or Business of Assuming Commodity Transaction Debts is called a "Clearing Participant" (Article 156-7 of the Financial Instruments and Exchange Act ("FIEA"), Paragraph 19, Article 2 of the Commodity Derivatives Act). JSCC sets forth matters relating to the requirements for Clearing Participants.

Clearing Qualification

  • As JSCC assumes obligations as a Clearing Organization and is exposed to credit risk of each trade counterparty, it needs to manage credit risk of the Participant. For such purpose, JSCC sets out the requirements to qualify as Clearing Participant (acquisition criteria and maintenance criteria), and any person who intends to become a Clearing Participant must apply for an acquisition of the Clearing Qualification to JSCC and obtain its approval.

Procedure of Clearing Qualification Acquisition

  • By setting out acquisition and maintenance criteria for each clearing service, JSCC conducts an examination for an applicant who intends to become a Clearing Participant (Qualification Acquisition Examination).
  • Through the Qualification Acquisition Examination, JSCC confirms “Management Structure,” “Financial Basis,” “Business Execution Structure” and matters necessary for operations of clearing services based on the application form submitted by the applicant. The examination will take three to four months under normal conditions.
  • As a result of the Qualification Acquisition Examination, if JSCC judges that the applicant fulfills all the requirements to be a Clearing Participant, JSCC will grant the clearing qualification to the applicant and approve the use of the clearing services.

Qualification Acquisition Examination

Contact Information related to Procedure of Clearing Qualification Acquisition

If you have any questions and inquiries about the Procedure of Clearing Qualification Acquisition, please contact:

Risk Monitoring Division, Risk Management Department
Japan Securities Clearing Corporation

TEL: 81-50-3361-1789
* Available hours: 9:00 through 17:00 on weekdays
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