LCH-JSCC basis drops as hedge funds arrive

Capula and Rokos Capital among funds to have gained access to JSCC in recent months


A surge in client clearing at the Japan Securities Clearing Corporation is cutting the price difference that exists for yen interest rate swaps cleared at JSCC and those cleared at rival LCH, dealers say.

Growing demand for access to JSCC is said to be driven by improved liquidity at the Japanese central counterparty (CCP), and hedge funds’ desire to arbitrage the basis between the two venues.

“There are more [non-Japanese firms] client clearing, and if this continues to increase then it will

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