Leichester, United Kingdom (PressExposure) October 12, 2012 -- Japan Futures Exchange (JPFEX) today issued a position paper that discusses its views on the appropriate Hong Kong solution to the G-20 leaders' objectives related to improving the Over-the Counter (OTC) derivatives markets. The paper, entitled: Transparency, Market Integrity & Risk
Management: The Role of the Regulated Exchange outlines the various goals set out by the G20 leaders and matches them to the capabilities and technology available through Hong Kong partners operated by JPFEX Clearing Facilities.
Commenting on the position paper, JPFEX Chief Executive Officer, Mr. Rokuro Shizuka stated:
"In response to the recent global economic crisis, G-20 leaders have called for important improvements to the Over-The-Counter derivatives market. We are pleased to put forward our views at JPFEX, in partnership with the dealer and user community, can provide solutions, linked to other global OTC marketplaces and clearing houses. An effective solution must reduce risk, enhance transparency and, most importantly, increase the integrity of the system. Hong Kong has a well-earned reputation for stability and trust."
Mr. Emoto Hayato, the President of JPFEX added the following comments: "This is a critical undertaking and work is already underway on a number of initiatives. We look forward to partnering with the industry and regulatory authorities as we bring robust, highly tailored solutions for OTC derivatives clearing to the market rapidly and effectively. As an operator of a globally recognized exchange and regulator of AA and AAA-rated derivative clearinghouse, we have the expertise, the technology and the track record and are building solutions to help reduce risk and strengthen the JPFEX capital markets."
Overview of Position Paper
The document expands on the commitments made by the G20 leaders and demonstrates the strong capabilities that exist today. This includes:
* Prudential oversight of financial institutions - aimed at reducing the risk of insolvency of institutions.
* Improved risk management - in terms of liquidity, operational risk (such as internal processes, people and systems) and counterparty risk.
* Increased transparency - both in the price formation process as well as post-trade.
* Promotion of market integrity - inherent in regulated markets and clearing houses.
* Mitigation of systemic risk - which can benefit from leveraging the existing capabilities of an established Hong Kong clearing house.
Japan Futures Exchange is the home of Futures, Options, Forex, CFD and commodities transactions. JPFEX is an all-electronic, open access market model with dedicated market makers and market participants providing liquidity.