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2025-09-17 00:26:29
[Hedge Funds Win: US Regulator CFTC Allows Japanese Firm to Provide Yen Interest Rate Swap Clearing Services to US Clients] Several hedge funds won a victory in Washington after the US Commodity Futures Trading Commission (CFTC) said it would allow a Japanese firm to provide clearing services for yen interest rate swaps to US clients. Several trading groups had asked the CFTC to approve the request of the Japan Securities Clearing Corporation (JSCC), saying it would provide better liquidity. This long-standing request has been controversial because of the way JSCC handles customer collateral and bankruptcy protection. Despite these concerns, the groups said in a letter last December that their members were deprived of the opportunity to "fully enjoy the competitive pricing and liquidity enjoyed by non-US individual market participants who clear through JSCC." The CFTC agreed.
