EU recognizes Japan's certain financial regulations equivalent to those of the bloc
Shortly before the European Union(EU)-Japan summit, the EU recognized certain financial rules of Japan as equivalent to those of the EU.
The European Commission said on Thursday morning that it determined Japanese rules in legal, supervisory and enforcement arrangements for non-centrally cleared over-the-counter (OTC) derivatives transactions to be equivalent to EU rules.
In particular, Japan's Financial Services Agency rules on valuation and dispute resolution for OTC derivative contracts not cleared by a central counterparty, and on obligations on the exchange of collateral (margins) between counterparties are deemed equivalent to EU rules, Xinhua reports.
This will alleviate the regulatory burden for EU and Japanese companies, allowing market participants to comply with only one set of rules and to avoid duplicative or conflicting rules.
On Thursday afternoon, the 26th summit between the EU and Japan takes place in Brussels, with President of the European Commission, Jean-Claude Juncker, and President of the European Council, Donald Tusk, meeting Japanese Prime Minister Shinzo Abe.