MarkitSERV, the electronic trade processing service for OTC derivative transactions, is now transmitting yen rates trades to Japan Securities Clearing Corporation (JSCC) through its network. Twenty plus global and regional bank entities using JSCC’s service can affirm transactions and submit eligible interest rate swaps for clearing within seconds of executing the trade. The connectivity provided by MarkitSERV is also used by JSCC for its credit default swaps clearing service.

JSCC is the first clearing organisation based in Asia-Pacific to clear yen-denominated interest rate swaps, and in terms of clearing volume, it has already become the largest clearing venue in the region for OTC financial derivatives. An estimated JPY 6 trillion in yen-denominated swaps are transacted each day in the OTC derivatives market globally.

Yasushi Suzuki, Managing Director at JSCC, says: “MarkitSERV’s expertise enabled us to successfully introduce clearing to the yen rates market in advance of regulatory mandates that take effect this November in Japan. In addition, its global network makes our service accessible not only to domestic Japanese banks but also to major players in the OTC derivatives market globally.”

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