Clarification of customer seg rules

FIA Japan submitted a letter to METI and MAFF requesting clarification of certain rules applying to Japanese commodity FCMs regarding customer margin deposits held with overseas brokers for commodity trades.  On Feb 2, 2013, FIA-J received a positive response from the regulators.

The response states that under certain conditions, customer deposits with a Japanese commodity FCM and held in segregation by an overseas registered broker may be considered as "properly segregated customer funds".  That is, segregated customer funds under US jurisdiction and laws and regulations are duly recognized as "comparable" to funds segregated under the laws and regulations of Japan.  Initially, this interpretation can be applied to overseas deposits held in segregation by US duly registered FCMs.

Please see the letter by FIA Japan and the response from METI/MAFF below.

Request_by_FIAJ_JP

Request_by_FIAJ_Eng

Reply_to_FIAJ_JP ORIGINAL

Reply_to_FIAJ_Eng TRANSLATION

Additional Reply_to_FIAJ_JP ORIGINAL