FIA Japan
Division Background

For FIA-Japan's main page, go to www.fiajapan.org.

Current Members

FIA-Japan is the only truly international organization in Japan dedicated to spreading the understanding and appreciation of futures and options markets, including commodity markets as well as all financial market instruments. FIA-Japan was organized in 1989 as a nonprofit organization by foreign and Japanese futures industry participants representing the entire cross section of the futures industry.
Its current membership consists of over 60 foreign and domestic organizations, bringing together FCMs, securities firms, banks, futures exchanges and futures associations and other professional firms and technology providers to the industry.
FIA-Japan monitors and comments on Japanese legislative and regulatory developments and exchange rules affecting the futures and options markets and its participants. It provides a forum for discussion of industry matters and provides training, seminars and information about Japan and international market practices and regulations.

Division News

FIA-Japan publishes March 2014 newsletter
To read the latest newsletter please click on the links below.

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FIA-Japan publishes January 2014 newsletter
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FIA-Japan publishes November 2013 newsletter
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FIA-Japan publishes September 2013 newsletter
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FIA-Japan publishes July 2013 newsletter
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FIA-Japan publishes May 2013 newsletter
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FIA-Japan publishes March 2013 newsletter
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FIA-Japan publishes September 2012 newsletter
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FIA-Japan publishes July 2012 newsletter
To read the latest newsletter please click on the links below.

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FIA-Japan publishes May 2012 newsletter
To read the latest newsletter please click on the links below.

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FIA-Japan Letter to Regulators regarding Comprehensive Exchange (April 2012)
Following our visits to and discussions with the FSA, METI, and MAFF, the Comprehensive Exchange Committee is pleased to report that FIA-Japan has sent each regulator a letter from Chairman Mitch Fulscher to formalize our support of the Comprehensive Exchange Project and simultaneously make our concerns known.  Chairman Fulscher reiterated FIA-Japan's long-held stance that the "silo" separation in Japan's markets pose a hindrance to business development, and expressed FIA-Japan's conviction that for Japan to regain a position of competitive strength in Asia's markets, we need clear messaging and urgent action.   The letters, complete with a detailed Appendix, can be seen at the links below.

Files are here:
http://www.fiajapan.org/contents/opinionletter/1337049643?language=english

FIA-Japan publishes March 2012 newsletter
To read the latest newsletter please click on the links below.

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bClick here to read newsletter in Japanese 

FIA-Japan publishes January 2012 newsletter
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FIA-Japan publishes September 2011 newsletter
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FIA-Japan publishes July 2011 newsletter
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FIA-Japan publishes May 2011 newsletter
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FIA-Japan publishes March 2011 newsletter
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FIA-Japan publishes March 2011 newsletter

To read the latest newsletter please click on the links below.
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FIA-Japan publishes January 2011 newsletter
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FIA-Japan publishes November 2010 newsletter
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FIA-Japan publishes September 2010 newsletter
To read the latest newsletter please click on the links below.
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FIA-Japan Annual General Meeting and Reception

FIA-Japan will celebrate its 22nd anniversary and hold the Annual General Meeting and reception at International House, Roppongi, Tokyo on Thursday, April 15, 2010.

Reception will be held from 6: 15 to 8: 15 p.m. If you are interested in participating in the reception, please contact Ms. Ogawa (fiaj@brookandbridge.com), Executive Secretary to FIA Japan, to register by March 30.

GOLD SPONSORS

  • Equinix
  • Tokyo Commodity Exchange
  • Tokyo Financial Exchange
  • Orc Software

FIA-Japan publishes March 2010 newsletter
To read the latest newsletter please click on the link(s) below.
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FIA-Japan publishes January 2010 newsletter
To read the latest newsletter please click on the link(s) below.
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FIA-Japan publishes October 2009 newsletter
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FIA-Japan publishes July 2009 newsletter
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FIA-Japan publishes May 2009 newsletter
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FIA-Japan publishes March 2009 newsletter
To read the latest newsletter please click on the link(s) below.
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FIA-Japan 21st Annual General Meeting and Reception

FIA-Japan will celebrate its 21st anniversary and hold the Annual General Meeting and reception at International House, Roppongi, Tokyo on Thursday, April 9, 2009.

Reception will be held from 6: 30 to 8: 30 p.m. If you are interested in participating the reception, please contact Ms. Ogawa, Executive Secretary to FIA Japan (fiaj@brookandbridge.com) to register by April 2.

SPONSORS

  • Equinix
  • NYSE Liffe
  • Tokyo Commodity Exchange
  • Tokyo Financial Exchange

 

FIA-Japan Delivers "Action Plan" for Improving Commodity Futures Clearing

Over the past several years, FIA-Japan has aggressively pushed the commodities industry to develop an adequate clearinghouse function in Japan. Last year we issued three reports that proposed a number of improvements and functional requirements for the clearinghouse. In January 2009, the Ministry of Economy, Trade and Industry asked FIA-Japan to draft an "Action Plan" for dealing with this important issue. On Feb. 9, 2009, we responded with a report titled "Report on Commodity Clearinghouse: Urgent Action" that was delivered to METI and also to the Ministry of Agriculture, Forestry and Fisheries and the Japan Commodity Clearing House.

Some of the key focal points in the report are as follows:

  • In the commodity industry, the Tokyo Commodity Exchange is the only institution with an adequate capital base and structure to support the development of a clearing function meeting global requirements. Therefore, the clearinghouse should be established within and by Tocom.
  • A working party should be created to take action and to direct the development of the clearinghouse.
  • Outside experts and/or a global clearinghouse should be invited to provide consultation to the working party.
  • The Japan financial/securities exchanges should be invited to work with and support this effort. The existing "silos" between commodities and financial markets should be crossed over and eventually dissolved. "Common clearing" among exchanges should be explored.

"It is FIA-Japan's plan to continue the activities of our Clearinghouse Task Force and to hold further discussions with Tocom and other leaders and interested parties to encourage the actions we have recommended," said FIA-Japan Chairman Mitch Fulscher. "We believe this initiative is essential for the success of the commodities industry in Japan."

Please contact FIA-Japan's executive secretary, Ms. Motoko Ogawa, for more information about this report.

Click here to read the report in English

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FIA-Japan publishes November 2008 newsletter

To read the latest newsletter please click on the link(s) below.

FIA-Japan publishes January 2009 newsletter

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Click here to read newsletter in Japanese

FIA-Japan publishes November 2008 newsletter

To read the latest newsletter please click on the link(s) below.

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FIA-Japan publishes September 2008 newsletter

To read the latest newsletter please click on the link(s) below.

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FIA-Japan publishes July 2008 newsletter

To read the latest newsletter please click on the link(s) below.

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FIA-Japan May 2008 newsletter

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Commodity Clearinghouse Task Force – Second Report Issued

 

FIA-Japan issued a second report in July 2008 with recommendations for improvements in the clearinghouse function for the commodities industry in Japan; This report has been sent to the commodities regulators and the JCCH. As reported earlier, the FIA-Japan Clearinghouse Task Force issued an Interim Report in April 2008 summarizing our recommendations for improving the clearinghouse function for the commodities industry in Japan, including the identification of several strategic business considerations. Subsequently, a regulators' study group issued its own report on changes that they believe should be made to the clearinghouse function. We have reviewed the study group recommendations and we have considered several areas where we believe further attention needs to be focused. Our comments and suggestions are included in this "follow-up report".  Our report also includes certain overall comments about the current status of the commodities industry in Japan as well as our suggestion to expand the scope of the clearinghouse project. Detailed recommendations included in the follow-up report cover the following areas: financial considerations (clearinghouse capital), corporate governance and management requirements (including conflicts of interests issues), operations planning (including planning for higher expenses and paying interest on deposits), clearing member minimum net capital requirements (such as adoption of global standards of calculation), and position transfers, give-ups and direct market access.

Click here to read the English version

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To all Members of FIA-Japan

Recently we obtained an English translation of a report issued by the Japan Securities Clearing Corporation (JSCC). This report is the "Comprehensive Improvement Plan of the Risk Management System". It includes changes which will be put into place related to collateral and margining and other areas related to risk management including the timing of cash movements and updating of information. Many of the changes will be effective in June and July this year.

JSCC is the clearinghouse for cash securities transactions executed on the stock exchanges in Japan, as well as the clearinghouse for the derivatives traded on TSE. Other derivatives exchanges including OSE, TFX have their own separate clearing organization.

The changes are primarily an upgrading of procedures to bring JSCC closer to global standards. However, most of the changes have already been in place at TFX and OSE. One area of concern by member firms relates to the valuation of bonds as collateral. This will require additional systems changes. This area should require coordination with the other exchanges as it provides a complex method for valuation not currently used by the other exchanges. Implementation of this change is currently scheduled for 2009.

Regards,

Mitch Fulscher

 

Commodity Clearinghouse Task Force – Interim Report Issued
The FIA-Japan Task Force issued an Interim Report with recommendations for improvement in the clearing function for the Japan commodities markets. This report was delivered to METI in connection with their study of the clearing function. The Report contains strong recommendations for improvements in clearing procedures and controls particularly with respect to financial safeguards and risk monitoring. There are serious shortfalls in the current system. In Japan. The Task Force considered the function and methods used by clearinghouses in the US and Europe, and has evaluated its application to the Japan commodity markets.

The Interim Report contains recommendations in the following areas:

  • Increase in Financial Requirements and Capital AdequacyThe clearinghouse corporate capital and the clearing members' minimum net capital requirements need to be increased. A focus on "liquid capital" should be instituted as part of the rules. Also improvement is needed in the fundamental structure of the financial guarantee (including the current "silo structure" by Exchange)

  • Corporate Governance
    Improvements are needed in the corporate governance structure of the clearinghouse, its Board of Directors and committees, and management (including conflict of interest considerations). Management and the Board must be empowered to act strongly for the interest of the clearinghouse.
  • Risk Management Pre-trade and post-trade risk management system must be established. This will require adequate systems and IT capability at the clearinghouse as well as close inter-cooperation with the exchanges and clearing members. Adequate examination of clearing members must be instituted.

  • Margining MethodologyRequirement for risk based margining system with real-time information is required. Globally accepted systems, such as SPAN, should be put into place.

  • Information and Service for Clearing MembersData, information, timeliness for providing clearing members with adequate information for risk management is essential. This will require significant investments in technology and human resources by the clearinghouse.

    Other Strategic Business Considerations
    In addition to the above areas, there are several strategic business considerations that needs to be addressed.

    · "For-Profit" model versus "not for profit" utility

    · Interest on Margin and Member deposits

    · Clearing OTC business

    · Role of Clearinghouse as Customer Money Custodian

    · Relationship and Support from International Clearinghouses

    The Task Force intends to comment further on these strategic issues.

    A copy of the Interim Report can be obtained from our FIA-Japan offices. Please contact Mitch Fulscher, Chairman FIA-Japan, or Ms. Motoko Ogawa, Executive Secretary.
    Click here to download full report

    FIA-Japan Issues Report Calling for "Urgent Action" to Strengthen Japan's Position as International Financial CenterRecently the inadequacy of the Japan financial market has been focused on by the Prime Minister's Cabinet. Prime Minster Abe's announced platform addresses these shortfalls and his intention to make changes. FIA-Japan was invited to meet with the special Cabinet Office Working Group and discuss our views with them, and we were asked to write a letter with our recommendations. On July 6, 2007, our Board approved the attached letter which was sent to the Cabinet Office. >

    The comments identify the priorities that should be focused on in order for Tokyo to become a global financial center. The critical priority action steps outlined in the letter include:

    • Develop a clear Strategy for the Tokyo Financial Market
    • Eliminate the financial market "Silos"
    • Create a competitive environment
    • Encourage international entry, remove regulatory hurdles
    • Establish a High Level promotional Tokyo Financial Center Office

    View FIA-Japan's letter

    Newsletter

    FIA-Japan May 2008 Newsletter

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    Download Japanese Newsletter

    FIA-Japan March 2008 Newsletter

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    Download Japanese Newsletter

    FIA-Japan December 2007 Newsletter

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    Download Japanese Newsletter

    FIA-Japan October 2007 Newsletter

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    FIA-Japan July 2007 Newsletter

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    Download Japanese Newsletter

    Past Events and Newsletters


  • Division Board Directory
    Chairman
    Mitchell R. Fulscher
    1-23-11 Kakinokizaka
    Meguro Ku
    Tokyo, Japan 152-0022
    81 90 7008 6790
    813 5701 7078 -Fax
    Vice Chairman
    Yasuo Mogi
    Chairman-CEO
    Nissan Century Securities Co., Ltd.
    1-38-11 Nihonbashi Kakigara-cho
    Chuo-ku, Tokyo, Japan 103-0014
    +813-5623-4488
    +813-5623-4388 -Fax
    Secretary
    Koichiro Ohashi
    Attorney at Law, Partner
    White & Case LLP
    Marunouchi Trust Tower Main
    26th Floor, Marunouchi, Chiyoda-ku
    Tokyo, Japan 100-0005
    813-6384-3300
    813-3211-5252 -Fax
    Treasurer
    David Wilkinson
    Senior Director, Business Development
    Equinix - Asia Pacific
    World Trade Center Building 33F
    2-4-1 Hamamatsu-cho,
    Minato-ku, Tokyo, Japan 105-6133
    +813-6402-6946
    Executive Secretary
    Sayaka Morizono
    FIA Japan Office c/o White & Case LLP
    Marunouchi Trust Tower Main 26th Floor
    Marunouchi, Chiyoda-ku
    Tokyo, Japan 100-0005
    813-6384-3325
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