Japan FSA threshold for trade execution 'extremely high'

A proposed ¥6 billion threshold for Japanese banks to trade swaps electronically from September 2015 will only capture the "10 or 20" largest dealers, providing relief to many smaller financial institutions

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 banks which