Public answer to ‘Recommendations for Central Counterparties’ report

The ‘Recommendations for Central Counterparties’ report was jointly issued by the Committee on BIS Payment and Settlement Systems (CPSS) of the central banks of the Group of Ten countries and the Technical Committee of the International Organization of Securities Commissions (IOSCO) in November 2004 (Note 1).

The Recommendations report consists of 15 recommendations centering on risk management policy requirements for central counterparties with each recommendation being composed of ‘Key Issues’ and ‘Key Questions’ focusing on specific, concrete points. Furthermore, these ‘Key Questions’ make it possible for a self-assessment to be conducted by answering the questions posed so that the counterparty’s own current status in terms of conforming to the recommendations can be determined (Note 2).

Since the commencement of DVP settlement through the DVP settlement system for non-exchange transaction deliveries in May 2004, we have seen this system become accepted and utilized by all DVP participants as one of the principal methods for settlement of trades. At JASDEC, we shall continue to make every effort to provide the kind of secure and efficient services required from us as a central counterparty and to operate this system in an uninterrupted fashion.