Citibank Japan Ltd. (CJL)s Securities Services, a division of Securities and Fund Services of Global Transaction Services, has been appointed by Interactive Brokers Securities Japan, Inc. (IBSJ) to provide Third Party Clearing services in Japan. With immediate effect, CJL will provide Third Party Clearing services for IBSJs Japanese equities trades on the Tokyo Stock Exchange (TSE).
By using CJLs Third Party Clearing platform in Japan, IBSJ will not have to develop and implement any local clearing and settlement presence in Japan. CJL will handle all of IBSJs clearing and settlement obligations in this market and will implement a linkage to Japan Securities Depository Center, Inc. (JASDEC), Japan’s central securities depository, as required by local regulations.
The decision to appoint CJL for Third Party Clearing services in Japan follows Interactive Brokers 2008 acquisition of Japans Moriai Securities, a fully-licensed broker-dealer, which was subsequently renamed IBSJ. After completing the acquisition IBSJ has been heavily focused on its trading strategies, deciding to leverage Citis Third Party Clearing experience after close examination of developments in the custody and clearing space in Japan.
By servicing IBSJs Japanese equities with its leading Third Party Clearing services, Citi will look to expand the relationship with the client in additional Asia Pacific markets. In winning this key piece of business, Citi has built on its existing leadership in providing the widest range of on exchange clearing services to brokerages in Asia Pacific. As of April 2010, Citi provides on exchange clearing services including collaboration with exchanges through Account Operator and Third Party Clearing services in Australia, Hong Kong, Malaysia, Singapore and Thailand.
IBs mission is to create technology to provide liquidity on better terms, says Steve Kelsey, managing director, Asia Pacific at Interactive Brokers said. Compete on price, speed, size, diversity of global products and advanced trading tools. We are looking forward to help establish the stock options market in Japan; to facilitate global firms and traders with access to the Japanese markets; as well as provide our advanced trading technology to local brokers, trading firms, and active traders.
D.C.