Dear FIAJ Members,
A Belated Happy New Year!
It was chaos last year due to the worldwide spread of COVID 19, and I am wondering how 2021 will be.
Although vaccines have been developed, it is unclear when the implementation of vaccine shots will be completed. Also, as coronavirus is rapidly mutating, no one knows the effectiveness of these vaccines on the new variants.
In such an unpredictable environment this year, I would say that our industry, which deals with derivatives products to hedge risk in the future, is most well situated to objectively analyze the current situation and overcome this crisis.
Last year, Tokyo Commodity Exchange’s commodity derivatives products were mostly transferred to Osaka Exchange, and in connection with the transfer, Japan Securities Clearing Corporation (JSCC) rules regarding margin requirements for listed derivatives products were reviewed. FIAJ participated as an observer in the review process within JSCC, and following an amendment to the JSCC Rules, more practical margin rules for global players were established. Also, the Japanese Government and Tokyo Metropolitan Government jointly implemented certain initiatives (such as an English language service provided by the newly-established Financial Market Entry Office within the Japanese Financial Services Agency). Those actions are working towards making Tokyo a top financial center in Asia again.
Under such situation, foreign investors, especially market makers and proprietary trading firms, have shown strong interest in the Japanese market. We continue to actively provide valuable information to those foreign investors and provide a bridge with the Japanese regulators, to help revive and further develop the Japanese markets.
FIAJ and I, as a legal professional, are committed to swiftly provide easily understandable information on newly enacted laws and regulations to our members. Should members think of necessary additional laws or regulations, we can deliver such a message to the relevant regulators in order to accomplish fair and efficient regulations.
Together, let’s kick start a prosperous new year!