JFSA eases VM rules for cross-border trades

Japanese firms with non-compliant CSAs can trade with certain foreign counterparties from March 1

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Paper versus practice: JFSA has eased requirements

Japanese regulators have followed their US and EU counterparts in softening the March 1 deadline for new derivatives margin requirements, but only for trades with certain foreign counterparties.

From March 1, Japanese financial counterparties will need to post variation margin – under new regulatory-compliant collateral agreements – against new non-cleared over-the-counter derivatives trades with Japanese banks, in line with efforts by international regulators.

However, given that many countri

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