A draft of the Act partially amending the Financial Instruments and Exchange Act, Etc (the 2010 Amendment) was submitted to the National Diet on March 9 2010 and was promulgated on May 19 2010. The 2010 Amendment consists of provisions to improve the stability and transparency of settlement of over-the-counter (OTC) derivative transactions including (i) systems for infrastructure development relating to clearing, (ii) a requirement to use a clearing organisation, and (iii) establishment of a system for the conservation and reporting of trading data. Provisions relating to (i) above will become effective within one year from May 19 2010 while provisions relating to (ii) and (iii) above will become effective within two and a half years from May 19 2010.
September 29 2010