Tullett Prebon Sends First SEF Trade for Clearing at JSCC

Tullett Prebon partnered with Markit for trade processing and clearing through the JSCC, and executed the trade via tpSEF's hybrid trading platform.

The JSCC received an exemption from the Commodity Futures Trading Commission (CFTC) from registering as a Derivatives Clearing Organization (DCO) last year, causing Tullett Prebon to look to execute the trade on tpSEF at the JSCC.

"It highlight's the firm's ability to adapt to a fluid regulatory landscape and offer clients the best possible solutions globally," said Tom Lovell, managing director at Tullett Prebon Japan, in a statement. "This trade could improve liquidity in the Japanese market and reduce fragmentation."

Sanjuro Takeuchi, head of Markit's Japanese business, added what this news means for the future of trading in Japan.

"This trade ushers in a new era for SEF clearing in Japan, demonstrating that seamless connectivity to the JSCC is now very much a reality," said Takeuchi, in a statement.