Japan: Initial margins on OTC clearing of forex swaps not desirable


Foreign exchange swaps should not attract an initial margin, says Japan's vice-minister of finance for international affairs, Takehiko Nakao, raising the possibility the country might follow the US in exempting this part of the over-the-counter derivatives market. In November, the US Treasury announced it would exempt forex swaps and forwards from mandatory clearing and exchange trading rules under the Dodd-Frank Act. Speaking at the Asian Financial Forum in Hong Kong, Nakao echoed the US Tre