State Street Japan Securities Clearing Corporation Collaboration for USD Cash Collateral
State Street has teamed up with the Japan Securities Clearing Corporation (JSCC) to enhance the clearing house’s interest rate swap clearing service by integrating USD cash as an eligible collateral. This collaboration comes as the US Securities and Exchange Commission plans to introduce a US Treasury repo clearing requirement in June 2026.
Under this partnership, clearing participants and customers can post USD cash collateral, which will be meticulously managed through daily sponsored repo transactions. The framework for these transactions was co-developed by State Street. In a statement, State Street shared that their entity, State Street Trust and Banking Co., Ltd. in Japan, will serve as the trustee for the US dollar collateral provided by clearing participants.
The US dollar collateral will be utilized in sponsored repo transactions that align with the upcoming US Treasury repo clearing requirement mandated by the SEC in June 2026. JSCC’s President and CEO, Konuma Yasuyuki, noted the significance of incorporating USD cash as collateral, calling it a major milestone for JSCC in catering to clearing participants and customers worldwide. Recognizing the growing emphasis on safekeeping and effective management of collaterals by CCPs globally, Yasuyuki expressed confidence that State Street’s service will deliver substantial value for users in Japan and beyond.
