On May 9, JPN SCC revised Business rules re specific management.
JPN SCC revised Business rules, etc., in line with the new specific management system for clearing deposits and trading margins in the securities clearing business.
Outline of Revisions
Where a clearing participant requests specific management for JPY-denominated clearing deposits, JPN SCC may manage the funds through lending secured by government bonds and trading of repurchase agreements involving government bonds.
Profit/loss arising from specific management of clearing deposits belongs to JPN SCC.
JPN SCC may pay the amount calculated by deducting half of profits generated for each month to clearing participants that declared an intention to use specific management, in proportion to the deposit balance of the clearing participants.
JPN SCC will set aside a reserve to cover losses arising from specific management.
Where losses arise from specific management, JPN SCC will compensate for them by drawing from the reserve; if insufficient, clearing participants who requested specific management will pay JPN SCC amount comparable to their clearing deposit balance.
Effectiveness
The revised Business rules, etc., will be implemented from May 30, 2025.
