The Commodity Futures Trading Commission is seeking public comment on a petition by the Japan Securities Clearing Corporation (JSCC) for an order of exemption from registration as a derivatives clearing organization (DCO). Pursuant to temporary no-action relief, JSCC currently allows US clearing members to clear certain swaps, provided that certain conditions are met. In particular, a US clearing member may clear swaps only on behalf of the clearing member’s proprietary accounts, and may not otherwise clear swaps for US persons. Unless the CFTC takes further action, this temporary relief will expire on December 31.
The CFTC is considering granting JSCC a permanent order of exemption. Comments on JSCC’s petition must be submitted by October 2.