Japan FSA threshold for trade execution 'extremely high'

Only banks with ¥6tn in derivatives must trade swaps electronically


The Japan Financial Services Agency has released rules governing trade execution on its domestic version of swap execution facilities, but a high threshold means only the biggest players will be required to execute electronically in the first instance. The draft rules propose that firms with an outstanding balance of ¥6 trillion ($59 billion) in notional derivatives must execute vanilla yen interest rate swaps electronically. Market participants say this will only capture the largest bank