Japan Securities Clearing Corporation (JSCC) announced it’s added USD cash as eligible collateral in its IRS Clearing Service. USD cash collateral posted by clearing participants and customers will be managed on a daily basis through sponsored repo transactions. This structure of which was jointly developed by State Street Trust Bank (SSTB) and the Fixed Income Clearing Corporation (FICC).
JSCC president and CEO Konuma Yasuyuki, said in a statement: “An addition of USD cash to eligible collaterals in IRS Clearing Service is a very big milestone for JSCC providing clearing services to clearing participants and their customers active globally. Amid rising calls for CCPs’ safe custody and efficient management of collaterals globally, we are confident that State Street’s USD cash collateral management service will realize great value for our users in Japan and overseas. ”
Akiko Terada, representative director and president of SSTB, said in a staatement: “The sponsored repo transaction provided by us is an innovative investment scheme which will bring more sophisticated credit management and risk control to the Japanese market. The scheme also meets US Treasury repo clearing requirement which is scheduled to be introduced by the US Securities and Exchange Commission (SEC) in June 2026. We look forward to supporting market participants in Japan unlocking greater benefits.”