CME Clearing Secures Licence to Clear Interest Rate Swaps in Japan

CME Clearing has been granted the status of FCO and is now a recognised clearing house in Japan.

Global derivatives marketplace, CME Group, has announced that CME Clearing, a division of its Chicago Mercantile Exchange Inc. business, has been formally granted the status of Foreign Clearing Organisation (FCO) by the Prime Minister of Japan.

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The news follows last week’s announcement that CME Clearing had also been granted Recognised Clearing House status by the Monetary Authority of Singapore (MAS).

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Commenting on the news, Sunil Cutinho, Senior Managing Director, and President of CME Clearing said: “We are pleased to obtain this license to clear non-Yen interest rate swaps, as we have seen significant demand for our services as our clients look to benefit from capital efficiencies for their interest rate swap portfolios. We look forward to helping market participants access clearing services across multiple asset classes and jurisdictions.”

CME Group which has been serving the Japanese market for nearly 30 years appointed Dr. Izumi Kazuhara as Executive Director, Head of Japan, to develop growth opportunities and customer relationships in Japan in 2012. The FCO status means that CME Clearing can now clear non-yen interest rate swaps on behalf of Japan-based financial institutions, further increasing the firm’s capabilities.

Christopher Fix, Managing Director, and Head of Asia Pacific, CME Group, added: “This is an important milestone for CME Group in Asia Pacific, as we continue to deliver on our growth strategy. Tokyo is an important global international financial centre, and we are pleased to be able to play a role here in helping to integrate the global interest rate swap market into Japan, and strengthening Tokyo’s position as an OTC derivatives hub.”

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