FIA comments on OSE and TOCOM consultation on derivatives holiday trading

Article summary

Futures Industry Association (FIA) has announced it has responded to proposals on the Introduction of Derivatives Holiday Trading issued by Osaka Exchange (OSE) and Tokyo Commodity Exchange (TOCOM). In the comment letter, FIA said that elements of the Exchange and Clearing House should function as normal as possible and be open for executing and clearing new trades through a holiday period so that effective risk management can continue like an ordinary business day. FIA also put forward alternative proposals for consideration by the Exchange, for example, Variation Margin and Initial Margin to be called daily in a currency different to the holiday currency, in accordance with best practices. According to FIA, this will allow for appropriate risk management to take place.