FIA Japan Side Letter Agreement in relation to JSCC Second Special Clearing Charge



Following the planned reform of the loss compensation framework in JSCC, the Second Special Clearing Charge equivalent to the Variable Margin Gain Haircutting will be newly introduced for JSCC clearing brokers from July 27, 2020.


Under the reformed waterfall of the loss compensation scheme, if the clearing brokers are charged with the Second Special Clearing Charge, each clearing broker may want to transfer the relevant amount of the charge to the customers on a pro rata basis (i.e. reimburse the corresponding amount of the charge from each customer).


FIAJ wishes to provide an industry-wide standardized “side letter” between clearing brokers and their customers so as to avoid any unnecessary broker-shopping based on the terms of transferring the corresponding charges, as well as offer a professionally-vetted legal document at a lower cost to the brokers.


Any brokerage firm interested in purchasing this document endorsed by FIAJ should contact the FIAJ Office for details (Administration Manager Mr. Tony Crane - crane@fiajapan.org or Executive Secretary Ms. Eri Waki - waki@fiajapan.org; Tokyo Tel: 03-4510-2222).


Note that FIA Japan Members will receive a preferential rate at an 80% discount. Please click on the below link for details on FIAJ Membership Benefits.

FIAJ Membership Benefits.pdf
Download PDF • 53KB

.