December 19, 2013

CFTC Staff Issues an Extension of a Time-Limited No-Action Relief to Japan Securities Clearing Corporation and Its Qualifying Participants and Affiliates

Washington, DC — The U.S. Commodity Futures Trading Commission’s (CFTC or Commission) Division of Clearing and Risk (Division) today issued an extension of a time-limited no-action relief to Japan Securities Clearing Corporation (JSCC) and its qualifying participants and affiliates.

In the extension of CFTC Letter 12-56, the Division states that it will not recommend that the Commission take enforcement action against:

  • Japan Securities Clearing Corporation (JSCC), an applicant for registration as a derivatives clearing organization (DCO), with respect to registering as a DCO pursuant to the requirements of section 5b(a) of the Commodity Exchange Act (CEA).
  • A qualified clearing participant of JSCC, or a parent or affiliate of a JSCC qualified clearing participant, subject to the Japanese clearing requirement, with respect to clearing a yen-denominated interest rate swap that is required to be cleared under section 2(h)(1)(A) of the CEA, through a registered DCO.

This extension will last until the earlier of the date on which JSCC registers as a DCO with respect to its interest rate swap clearing business or December 31, 2014, provided that JSCC submits a materially complete application by February 28, 2014. The no-action extension is subject to several conditions.

Last Updated: December 19, 2013