JAPAN MEMBERS' COMMITTEE
ISDA Japanese Members continue to develop and expand their activities through the locally based ISDA committees:

How to Join

Committee Structure

Monthly Update of Activities

Monthly Update of Activities (2012)

DATE
REPORT
January 2012 Japan Monthly Update - January 2012 (English) Japan Monthly Update - January 2012 (Japanese)

February 2012

To be posted (English) To be posted (Japanese)

Available Document

SUBJECT
STATUS
AVAILABLE DOCUMENT
GENERAL
Summary of Japan Committee structure and activities in Japanese language Posted on ISDA website – February 2010 Japan Committee structure and activities in Japanese language
FAQ on Copyright Posted on ISDA website – July 2007 Japanese translation of Memorandum of Frequently asked Questions on Copyright
ACCOUNTING
Comment letter to ASBJ: Issue Paper on improvements of Accounting Standard for Financial Instruments (Classification and Measurement of Financial Liabilities) Japanese Submitted  – April 25, 2011 Comment Letter, April 25, 2011

Comment letter to IASB: Proposal on Hedge Accounting and Answers to the questions posed by the IASB Staff during May Roundtable

Submitted  – August 17, 2010

Comment Letter to IASB, August 17, 2010

Comment letter to Accounting Standard Board of Japan (ASBJ) on the “Discussion paper on possible improvements of the accounting for financial instruments”

Submitted – July 29, 2009

Comment Letter to ASBJ, July 29, 2009 (in Japanese Language)

Comment letter to Accounting Standard Board of Japan (ASBJ) and Japanese Institute of Certified Public Accountants (JICPA) on the rules and guidelines relating to the hedge accounting applicable to derivatives transactions

Submitted – May 7, 2009

Comment Letter to ASBJ (in Japanese Language) and;

Comment Letter to JICPA (in Japanese Language)

Comment Letter to Accounting Standard Board of Japan (ASBJ) on the ED for accounting hybrid financial product (inflation-linked bond and credit-linked products) – published on January 27, 2006

Submitted – February 27, 2006

Comment Letter to ASBJ, February 27, 2006 (in Japanese Language)
COLLATERAL
Amendment to the English Law (Transfer) CSA and New York Law CSA regarding withholding tax on JPY held as collateral Published - August 9, 2004 Form of Amendment to 1995 ISDA Credit Support Annex (Transfer - English Law) and; Form of Amendment to 1994 ISDA Credit Support Annex (Security Interest - New York Law)
CREDIT DERIVATIVES

Letter by Japan Credit CCP Working Group - Requests for the CCP on Japanese CDS

Sent to CCPs – September/October 2009

Requests for the CCP on Japanese CDS (English) and; Requests for the CCP on Japanese CDS (Japanese)

Standards and practices for handling material non-public information in credit-portfolio management Posted on ISDA website – July 2006 Japanese translation of ‘Joint Market Practice Forum’ document
DOCUMENTATION

Comment letter to Ministry of Justice {"MoJ") on the "Interim Report of Points at Issue on the Civil Code (law of obligations) Reform"

Submitted – August 1, 2011

Comment letter to MoJ (intro), August 1, 2011 and Comment letter to MoJ (comments), August 1, 2011

EQUITY DERIVATIVES
Japanese Master Variance Swap Confirmation Agreement - Index and Share variance swap Annex IVS Published – June 30, 2006

Annex SVS published – December 21, 2006
Japanese Variance Master Confirmation
Japanese Master Equity Derivatives Confirmation Agreement Published – February 18, 2005 Japanese Equity Master Confirmation
Confirmations for use with the 2002 ISDA Equity Derivatives Definitions - Japanese Inter-Dealer Market Templates for Cash-settled Index Options and the Physically-settled Share Options Published - June 21, 2004 Japanese Inter-Dealer Market Templates
REGULATORY
Comment Letter to Japanese Financial Services Agency on the scope of mandatory CCP clearing regulations - Japanese Submitted –November 14, 2011 Comment Letter to Japanese FSA, November 14, 2011 – Japanese

Comment Letter to Japanese Financial Services Agency on “Notice of transactions excluded from the scope of the license for the Financial Instruments Obligation Assumption Service” Submitted – October 6, 2011 Comment Letter to Japanese FSA, October 6, 2011 – Japanese

Letter to Japanese Financial Services Agency – Proposals Pertaining to the Applicable Scope of the Mandatory Central Clearing for Over-the-Counter Derivatives Submitted – September 9, 2011 Letter by Japan OTC Derivatives Regulations Working Group - Sent to Japanese Financial Services Agency (FSA) – Japanese

Letter by Japan OTC Derivatives Regulations Working Group - Sent to Japanese Financial Services Agency (FSA) – English

Comment Letter to Japanese Financial Services Agency on the proposed amendments to the Ordinances for Banking Act (Ginko H o- Sekou Kisoku) – published on August 27, 2010 Submitted – September 27, 2010 Comment Letter to Japanese FSA - September 27, 2010 (in Japanese Language)
Comment Letter to the Ministry of Economy, Trade and Industry (METI) on the exposure draft of the Government Ordinance (Seirei) of the revised Commodity Exchange Act (Commodity Futures and Exchange Act) – published on August 15, 2010 Submitted – September 13, 2010 Comment Letter to METI – September 13, 2010 (in Japanese Language)

Comment Letter to Japanese Financial Services Agency on the proposed amendments to the Comprehensive Guidelines for Major Banks and for Financial Instruments Business Operators – published on January 20, 2010

Submitted – February 22, 2010

Comment Letter to Japanese FSA, February 22,2010 (in Japanese Language)

Comment Letter to Japanese Financial Services Agency on the Draft Blueprint for the Development of Institutional Frameworks Pertaining to Financial and Capital Markets – published on December 17, 2009

Submitted – December 24, 2009

Comment Letter to Japanese FSA, December 24,2009 (in Japanese Language)

Comment Letter to Japanese Financial Services Agency on the exposure draft of cabinet ordinances for Financial Instruments and Exchange Law – published on October 16, 2009

Submitted – November 16, 2009

Comment Letter to Japanese FSA, November 16,2009 (in Japanese Language)

Memorandum on the treatment of an electronic confirmation under the Financial Instruments and Exchange Act (FIEA) in Japan

Published – October 31, 2008

Memorandum on the treatment of an electronic confirmation under the FIEA, October 31, 2008

Structured Products: Principles for Managing the Distributor-Individual Investor Relationship

Published – July 7, 2008

Principles for Managing the Distributor-Individual Investor Relationship

Japanese Translation - Principles for Managing the Distributor-Individual Investor Relationship (in Japanese Language)

Comment Letter and annexes to Japanese Financial Services Agency on the exposure draft of cabinet ordinances for Financial Instruments and Exchange Law and the cabinet ordinances – published on April 14, 2007 Submitted – May 21, 2007

Comment Letter to Japanese FSA, May 21, 2007

Annex 1

Annex 2

(all materials in Japanese Language)

Presentation materials on “Recent Developments in Credit Derivatives market and the Challenges for Japan” – the 10th meeting of the Study Group for Internationalization of Capital and Financial Markets in Japan Presentation on May 10, 2007

Recent Developments in Credit Derivatives market and the Challenges for Japan (English language version)

Recent Developments in Credit Derivatives market and the Challenges for Japan (Japanese language version)

Comment Letter to Japanese Financial Services Agency on the Financial Instruments and Exchange Law and the cabinet ordinances – the Law was promulgated on June 14, following the approval and passage of the bills at the Diet on June 7, 2006 Submitted – August 29, 2006 Comment Letter to Japanese FSA, August 29, 2006 (in Japanese Language)
RISK MANAGEMENT
Comment Letter to Japanese Financial Services Agency on the Final Draft of New Capital Accord Implementation – published on December 28, 2005 Submitted-January 26, 2006 Comment Letter to Japanese FSA, January 26, 2006 (in Japanese Language)
Presentation materials on ISDA Credit Derivatives / Risk Management Seminar on July 21, 2005 Posted on the web - July 21, 2005

Credit Derivatives – Documentation, Operations, and Industry Solutions

Treatment of Credit Derivatives – Basel I to Basel II (slides in Japanese language)

Comment Letter to Japanese Financial Services Agency on the Second Draft of New Capital Accord Implementation – published on March 31, 2005 Submitted – April 20, 2005 Comment Letter to Japanese FSA, April 20, 2005 (in Japanese Language)
Comment Letter to Japanese Financial Services Agency on the Exposure Draft of New Capital Accord Implementation – published on October 28, 2004 Submitted – November 30, 2004 Comment Letter to Japanese FSA, November 30, 2004 (in Japanese Language)
WEATHER, COMMODITIES AND DEVELOPING PRODUCTS

Comment letter to Ministry of Economy, Trade and Industry (METI) on the final report of the issues to facilitate an accessibility of emission credits under Kyoto Protocol (Kyoto credits)

Submitted – August 19, 2008

Comment letter to Ministry of Economy, Trade and Industry (METI), August 19, 2008 (in Japanese Language)

Emission Trading Working Group - ISDA Japan Proposal for Establishment of OTC Market for Emissions Trading (Full Japanese Language Report) Posted on ISDA website – June 9, 2004 English Summary Translation and; Full Japanese Language Report

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Steering Committee

Steering Committee is comprised of ISDA's Japanese board and staff members. Its mission is to determine, develop, and enhance locally based committees, task forces, working groups, and educational programs that focus on international and domestic industry issues.

Documentation Committee

  • Chair: Teruo Tanaka (Royal Bank of Scotland)
  • ISDA Staff Contact: Kumi Namba (knamba@isda.org)

Documentation Committee is responsible for the development and updating of ISDA Master Agreement and its supporting documents, and works to ensure the enforceability of the netting provisions of the Agreement.

Collateral Committee

  • Chair: Yoshihiro Ueshima (Bank of Tokyo-Mitsubishi UFJ)
  • ISDA Staff Contact: Tomoko Morita (tmorita@isda.org)

The goals of Collateral Committee are to enhance the use of collateralization as a credit risk protection tool, to resolve unique problems in collateral management that may occur only in Japanese derivatives business, and to establish guidelines for collateral management in Japan.

Regulatory Committee

  • Co-Chair: Yutaka Nakajima (Nomura Securities)
  • Co-Chair: Yasuhiro Shibata (Mizuho Securities)
  • ISDA Staff Contact: Tomoko Morita (tmorita@isda.org)
The Regulatory Committee discusses the proposed or necessary changes to the laws and regulations affecting the Japanese members and/or the local derivatives market. The Committee also covers the international and local tax & accounting issues.

Financial Instruments and Exchange Act (FIEA) Working Group

  • Chair: Teruo Tanaka (Royal Bank of Scotland)
  • ISDA Staff Contact: Tomoko Morita (tmorita@isda.org)

FIEA Working Group was set up in June 2007 after the bill of the new law was approved in the Diet, and working group discusses the varieties of implementation issues focusing on OTC derivatives transactions. The group also acts as the representative of derivatives industry in Japan and had proactive discussions with the regulators. 

OTC Derivatives Regulations Working Group

  • Co-Chair: Yutaka Nakajima (Nomura Securities)
  • Co-Chair: Yasuhiro Shibata (Mizuho Securities)
  • Co-Chair: Atsuya Watanabe (J.P. Morgan Securities Japan)
  • Co-Chair: Takashi Akiyama(Deutsche Securities))

The Japan OTC Derivatives Regulations Working Group discusses legal, regulatory and practical issues including central counterparties that will become mandatory under the FIEA by November 2012. The working group's aim is to promote the development of OTC derivatives market in Japan through successful implementation of CCPs.

CCP DMP Working Group

  • Co-Chair: Yasuhiro Shibata (Mizuho Securities)
  • Co-Chair: Atsuya Watanabe (J.P. Morgan Securities Japan)
  • Co-Chair: Sotaro Kato (Nomura Securities)
  • Co-Chair: Takashi Akiyama (Deutsche Securities)

The Japan CCP DMP Working Group discusses issues in the default management processes (DMP) of central counterparties and work to set out the best practices of the process. The Working Group's aim is to promote the development of OTC derivatives market in Japan through successful implementation of CCPs.

Risk Management Committee

The Risk Management Committee serves as a forum for Japan based risk management practitioners to discuss issues mainly related to the new capital adequacy framework of Basel Committee, i.e. the capital treatment of counterparty risk, credit risk mitigations, the treatment of operational risk and so on.

Accounting Committee

  • Chair: Masamichi Ishikawa (Mizuho Corporate Bank)
  • ISDA Staff Contact: Tomoko Morita (tmorita@isda.org)

The Accounting Committee serves as a forum to discuss and examine current market practices in Japan which relate to the accounting treatment of OTC derivatives instruments, and also works with Accounting Standard Board of Japan (ASBJ) when necessary. The Committee is to consider a wide range of issues including hedge accounting, fair value measurement, and international harmonization.

Operations Committee

  • Co-Chair: tbc
  • Co-Chair: Kaori Hattori (Nomura Securities)
  • ISDA Staff Contact: Kumi Namba (knamba@isda.org)

Operations Committee deals with a wide range of middle and back-office related issues and initiatives including implementation of FpML (Financial products Markup Language), promotion of STP (straight through processing)  and automation of various trade processes such as generation and matching of trade confirmations, pre-settlement matching of cash flows and portfolio reconciliation.

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Credit Derivatives Committee

  • Co-Chair: Yoshiaki Matsumoto (Mitsubishi UFJ Morgan Stanley Securities)
  • Co-Chair: Atsuya Watanabe (J.P. Morgan Securities Japan)
  • Co-Chair: tbc
  • ISDA Staff Contact: Kumi Namba (knamba@isda.org)

Credit Derivatives Committee focuses on the market practices of the region as well as legal due diligence. The committee also deals with locally unique problems that would prevent the development of the market, as well as keeping the members updated with the discussions in Credit Derivatives Committee in New York and London.

Equity Derivatives Committee

  • Co-Chair: Alfred Chan (Mizuho Securities)
  • Co-Chair: Toshihiko Matsuura (Nomura Securities)
  • ISDA Staff Contact: Kumi Namba (knamba@isda.org)

Equity Derivatives Committee discusses legal, documentation and market practice issues and initiatives in the Japanese equity derivatives market.

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Weather, Commodities & Developing Products Committee

  • Co-Chair: Yasuyuki Tateda (Bank of Tokyo Mitsubishi UFJ)
  • Co-Chair: tbc
  • ISDA Staff Contact: Tomoko Morita (tmorita@isda.org)

Weather, Commodities & Developing Products Committee focuses on weather data related subject, standardization of documentation, Japanese documentation to end-user and regulatory issues as to newly developed products. The Committee worked to prepare standard Weather Derivatives Confirmations in the area of HDD and Precipitation. In connection of these works, the Committee considered several existing local provisions of Fallback Methodology and Data Corrections that are used in the Japanese market. In 2002, Global Working Group for Weather Derivatives has been kicked-off and decided to start to work on global template of Confirmations using WRMA HDD Swaps and Caps Confirmations that were published in 2003.

Emission Trading Working Group

  • Chair: Yusaku Manabe (Mitsubishi UFJ Morgan Stanley Securities)
  • ISDA Staff Contact: Tomoko Morita (tmorita@isda.org)

Emission Trading Working Group discusses legal, accounting and regulatory issues with regard to emission trading in Japan. The Working Group’s aim is to promote the development of OTC emission trading market in Japan.

Property Derivatives Working Group

  • Chair: Nobukazu Saeki (Mitsubishi UFJ Morgan Stanley Securities)
  • ISDA Staff Contact: Tomoko Morita (tmorita@isda.org)

Property Derivatives Working Group was set up to discuss market, legal, accounting and regulatory issues respecting the property derivatives transactions, aiming to the further development of OTC property derivatives market in Japan.

English Speaking Committee

The English Speaking Committee provides a forum for discussion of key areas in the Japanese derivatives market, i.e. Master Agreements and Collateral, for non-Japanese speaking professionals. (All other committees are conducted in Japanese.)

If you would like to receive information or to join any of the committees, please contact ISDA Tokyo office by phone at 813 5200 3301, fax at 813 5200 3302, or email:isdajp@isda.org.

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  Last Updated: March 7, 2011