Only 4% of Japan swaps have traded electronically

ETP volumes are low despite mandate and participants are worried about regulation's future scope

computer
Electronic trading off to a slow start

Japan's switch to electronic trading of certain over-the-counter interest rate swaps has got off to a sluggish start – due to a narrow mandate – with just 4% of the overall market being transacted on an electronic trading platform.

Japan's electronic trading mandate took effect on September 1, requiring onshore institutions with ¥6 trillion ($59 billion) of OTC derivatives to execute mandated swaps using an electronic trading platform (ETP).

The mandated tenors are extremely narrow, covering fix

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: