IOSCO Issues Favorable Report on Japanese CCPs

In February 2015, IOSCO issued its report on its assessment of Japan’s CCPs and trade repositories, which are under the jurisdiction of FSA and BOJ. In its key findings, the report notes that the “Principles for financial market infrastructures” which were established by IOSCO and related organizations, have been implemented in a complete and consistent manner, and through a high-level policy-based approach, in the Japanese legal, regulatory and policy frameworks.


As background, in April 2012, the Committee on Payments and Market Infrastructures and IOSCO published a report entitled "Principles for Financial Market Infrastructures." These principles set expectations for the design and operation of key financial markets infrastructures, including central counterparties (CCPs), to enhance their safety and efficiency and more broadly, to limit systemic risk and foster transparency and financial stability. IOSCO and the Committee agreed to monitor the implementation of the Principles among member jurisdictions including Japan. The above mentioned report is a result of their monitoring.