Financial Regulatory Forum

Japan’s FSA to regulate CDS clearinghouse participation-Nikkei

By John Manley
April 13, 2010
credit default swaps | FSA | Japan

   April 13 (Reuters) – Japan’s Financial Services Agency (FSA) plans to introduce a capital requirement for credit default swap clearinghouses and an accreditation system for their major shareholders, the Nikkei business daily reported.
   The minimum level of capital is expected to be in the hundreds of millions of yen and FSA approval will be required to obtain control of 20 percent or more of voting rights, the paper said.
   Credit default swaps are used to protect against a borrower defaulting on their debt or to speculate on their credit quality. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Anne Pallivathuckal) ((aruna.jennifer@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging:aruna.jennifer.reuters.com@reuters.net)) Keywords: FSA/CDSCLEARINGHOUSES 
  
Monday, 12 April 2010 22:41:00RTRS [nSGE63B0M7] {C}ENDS

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