How US hedge funds won big on permission to clear at JSCC
But CFTC no-action letter won’t allow netting of Japanese trades with those cleared at US FCMs
For years, US hedge funds that wanted to play in the most liquid market for yen cleared interest rate swaps had found themselves pushing on a locked door. The US Commodity Futures Trading Commission refused to contemplate allowing clients to access Japan’s largest swaps clearing house, Japan Securities Clearing Corporation, unless the central counterparty (CCP) made unfeasibly far-reaching changes
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