GFI Group (Nasdaq: "GFIG") is honoured to have been asked by the Japan Securities Clearing Corporation (JSCC) and Tokyo Stock Exchange (TSE) to join the Working Group set up in May for the design of a central counterparty to clear over-the-counter derivatives.
The JSCC and TSE Working Group, set up in accordance with the report released from the Study Group on post-trade processing of OTC derivatives trades on March 27th, 2009, is comprised of 16 members. GFI Group, through its subsidiary GFI Securities Limited -Tokyo Branch, is the only inter-dealer broker serving in the Working Group. Other members are major Japanese and international banks and securities houses.
The objective of the Group is the creation of a detailed central counterparty functionality for the purpose of launching a clearing service for interest rate swaps (IRS) and credit default swaps (CDS).
The JSCC will develop clearing operations for OTC derivatives trades based on the conclusions of the Working Group.
GFI Group, via GFI Securities Limited Tokyo Branch, operates an interactive electronic trading platform for CDS in Japan- CreditMatch.
CreditMatch trades credit derivatives and cash bonds. It forms a key part of GFI's hybrid brokerage model, serving the market from its operations in New York, London, Sydney, Tokyo, Singapore and Hong Kong and working alongside GFI's credit brokers from each of these offices.
CreditMatch displays CDS and bond prices together on the same screen giving users more information about related markets. CreditMatch offers STP through a real-time API service. These STP solutions improve trade processing efficiency making trading capture faster and more cost effective.