Japan Securities Clearing Corporation

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Japan Securities Clearing Corporation
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Founded 2002
Headquarters Tokyo
Key People Yoshimasa Yamashita, president and CEO
Products Clearing of derivatives and cash equities
Website http://www.jscc.co.jp/english/index.html

The Japan Securities Clearing Corporation (JSCC) was established in 2002 to provide clearing services for the country's five equities exchanges. It started clearing derivatives trades for the Tokyo Stock Exchange - its largest shareholder - in February 2004.

Background

The JSCC was formed by Japan's five stock exchanges in July 2002, replacing their in-house operations following a government-led review of clearing and settlement systems. The Japan Securities Depositary Center had already assumed responsibility for settlement services from the exchanges in 1991, and the entry into force of the Securities and Exchange Law in January 2003 paved the way for the transfer of clearing business to the newly-established JSCC on January 14, 2003[1].

The JSCC is capitalized at JPY1.7bn, with ownership based on the market shares of equity trading at the time of its creation. The TSE is the dominant shareholder, with 86.3 percent. The balance is owned by the Osaka Securities Exchange (9.5 percent); Japan Securities Dealers Association (3.4 percent) and the Nagoya Stock Exchange (0.7 percent), with the Sapporo Securities Exchange and the Fukuoka Stock Exchange each owning 0.05 percent[2].

The JSCC is supervised by Japan's Financial Services Agency.

References

  1. Speech by K Nishimukai, risk management officer. JSCC.
  2. History. JSCC.