Japanese firms delay IM plans due to netting uncertainty

Those caught in phase five are awaiting law change to enable use of custodian banks

Netting

Japanese financial firms need a change in the nation’s netting law before they can finalise plans for posting initial margin on cross-border derivatives trades. While time is running out for up to 40 firms to conclude IM arrangements well ahead of the September 2020 deadline, the rule change might only come by the end of this year. 

As part of the IM preparation, firms will have sign up with custodians for cross-border trades, but to do that they need the law to allow margin to be netted

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 individual account here: