FIA Japan has been facing the Covid challenge as an organization. In the past, we held receptions and seminars which allowed members of the industry to gather and network. The benefits have allowed many in the industry to get to know each other. With Covid, FIA Japan turned to the virtual world.
The core of the activities we have engaged with have been at the committee level. We have coordinated various roundtables with Japan’s Financial Services Agency (FSA) on topics ranging from attracting Asset Managers to Japan to obtaining feedback on activities conducted by the FSA. This activity has been led by Hiroki Tomiyasu, Chairman of the International Financial Center Committee.
The Operations Committee, led by Shun Yanagisawa, has been working on issues around JSCC in close collaboration with our colleagues at FIA in the Asian region. These issues covered the JSCC plans to introduce VaR (Value at Risk) calculations for initial margin, in replacement of SPAN, as well as the CF/IM ratio (Clearing Fund / Initial Margin). Another important topic tackled by this committee is related to the JPX plans to launch holiday trading, and the implications on clearing operations and risk management. He is also coordinating discussions between buy and sell side firms' operations to create a more efficient workflow between the two major participants of the industry.
Other committees have also been active in reaching out to the industry, finding issues to discuss and also finding solutions to problems they encounter.
In 2022, we look to restart in person activities so that the networking, which Covid restricted, can commence again. The financial industry is said to be technology-driven. It is people behind the technology and sharing of thoughts and ideas that actually allows the industry to grow and operate efficiently. We hope that FIA Japan can serve as one of the means to let the ideas flow between various market participants.