Hedge funds win: US regulatory agency CFTC allows Japanese companies to provide yen interest rate swaps clearing services to US customers.

Multiple hedge funds in Washington have won a victory, after the U.S. Commodity Futures Trading Commission stated that it will allow a Japanese company to provide clearing services for yen interest rate swaps for U.S. customers. Several trading groups had requested CFTC approval for the Japanese securities clearing company's request, arguing that it would provide better liquidity. There has been ongoing controversy over the way JSCC handles customer collateral and bankruptcy protection. Despite these concerns, the group wrote in a letter in December last year that their members were being deprived of the "competitive pricing and liquidity opportunities enjoyed by non-U.S. individual market participants clearing through JSCC." CFTC has agreed with this assessment.