The members of “the Council of Experts on Managing Settlement Risks of FX Transactions for OTC FX Brokers”, established by the JFSA, discussed measures to mitigate risks arising from default of a counterparty which clears cover positions of OTC FX Brokers. According to the final report published by the council, it is expected that adoption of CCPs will be facilitated as a measure to mitigate such risks. On the part of Tokyo Financial Exchange, Inc. (TFX), following investigation and drafting of a new scheme to clear FX broker’s cover deal (FX Clearing Scheme), TFX held an explanatory meeting on September 11 on the topic of FX Clearing Scheme for 67 participants from 34 firms including OTC FX brokers, financial institutions, etc.
In the meeting, TFX offered a summary of the FX Clearing Scheme and a system vender (who will provide services for the scheme) presented an outline of the system configuration.
TFX will introduce the scheme as soon as practicable in order to contribute to the soundness of the OTC FX margin trading market as a whole.