--- title: "Japan CDS market overview" aliases: - "japan-cds-market-overview" - "Japan credit default swap market" - "iTraxx Japan" - "Japan single-name CDS" - "Japan corporate CDS" - "日本 CDS マーケット" - "日本クレジット・デフォルト・スワップ市場" - "derivatives/itraxx-japan-index" domain: derivatives created: 2026-05-25 last_updated: 2026-07-29 last_tended: 2026-07-29 review_by: 2027-01-29 confidence: likely tags: [derivatives, cds, credit-default-swap, itraxx, jscc, ice-clear-credit, isda, dealer-market, japan-corporate-credit] status: active sources: - "https://www.jpx.co.jp/jscc/en/otc/member_cds.html" - "https://www.jpx.co.jp/jscc/en/cash/cds/product.html" - "https://www.jpx.co.jp/jscc/en/cash/cds/clearing.html" - "https://www.jpx.co.jp/jscc/en/participant/cds/cds2.html" - "https://www.jpx.co.jp/jscc/en/cds_archive/index.html" - "https://www.spglobal.com/spdji/en/documents/methodologies/iTraxx_Japan_Index_Rules.pdf" - "https://www.bis.org/statistics/derstats.htm" --- # Japan CDS market overview ## TL;DR JSCC started index CDS clearing on 19 July 2011 and single-name CDS clearing on 15 December 2014. Its service page states that coverage comprised index CDS and 60 single-name issues as of 16 September 2025, while the live product page lists the eligible iTraxx Japan series and reference entities. These pages establish JSCC eligibility and cleared-service scope, not whole-market liquidity, dealer rankings or cross-CCP shares. ## Wiki route This entry sits under [[derivatives/INDEX|derivatives index]] and describes the public evidence available for Japan CDS products and clearing. Read [[derivatives/cds-japan-corporate-spread-mechanics|Japan corporate CDS spread mechanics]] for single-name pricing, [[derivatives/basis-trade-bond-cds-japan|bond-CDS basis trade]] for relative-value mechanics and [[derivatives/japan-irs-market|Japan IRS market]] for the rates context. For adjacent funding and balance-sheet context, see [[derivatives/yen-basis-swap-market|yen basis swap market]], [[derivatives/cross-currency-basis-swap-japan|cross-currency basis swap Japan]], [[finance/INDEX|finance index]], [[banking/INDEX|banking index]] and [[insurance/japan-life-insurance-alm-overview|Japan life insurance ALM]]. These links provide context; they do not establish CDS participation or volume. ### Product and clearing scope The product table combines JSCC's dated service statement with its live eligibility page. The live page, not this snapshot, controls current eligibility. ^[Sources: https://www.jpx.co.jp/jscc/en/otc/member_cds.html; https://www.jpx.co.jp/jscc/en/cash/cds/product.html.] | Scope | Public evidence | Boundary | |---|---|---| | iTraxx Japan index CDS | The live page lists eligible series 36-45. | Series eligibility can change; it does not establish trading volume. | | Single-name CDS | The service statement records 60 issues as of 16 September 2025; the live page names eligible reference entities. | Eligibility does not establish dealer count, bid-ask width or whole-market liquidity. | | Other CDS structures | Index-tranche, sovereign, quanto and loan-CDS terms require their own confirmation and venue evidence. | Index or single-name eligibility does not prove that another structure is clearable. | | General eligibility | The transaction must use the applicable ISDA Credit Derivatives Definitions; both clearing participants must apply; notional and settlement must be JPY; notional is capped at JPY 100 billion with no decimals; remaining term must be at least 1 day. | Additional product and rule conditions still apply. | ### Service chronology The following table separates index and single-name launches and keeps dated coverage statements distinct from the live list. ^[Sources: https://www.jpx.co.jp/jscc/en/information/news/20110715.html; https://www.jpx.co.jp/jscc/en/information/news/20141215.html; https://www.jpx.co.jp/jscc/en/otc/member_cds.html.] | Date | Verifiable event | |---|---| | 19 July 2011 | JSCC began clearing index CDS. | | 15 December 2014 | JSCC launched single-name CDS clearing with 12 initially eligible corporate reference entities. | | 16 September 2025 | JSCC's service page stated coverage of index CDS and 60 single-name issues. | | Live page | JSCC publishes the currently eligible series, reference entities and transaction conditions. | ### What the public clearing pages prove The following table applies a different measurement boundary to each public surface. ^[Sources: https://www.jpx.co.jp/jscc/en/cash/cds/product.html; https://www.jpx.co.jp/jscc/en/participant/cds/cds2.html; https://www.jpx.co.jp/jscc/en/cds_archive/index.html; https://www.bis.org/statistics/derstats.htm.] | Evidence surface | Supported use | Unsupported inference | |---|---|---| | JSCC live product list | Eligible series, reference entities and clearing conditions | Bilateral or other-CCP eligibility and activity | | JSCC participant list dated 21 February 2022 | Participation and entrustor relationships on that page's date | A current dealer ranking or market share | | JSCC monthly statistics | JSCC-cleared activity for the stated month and counting method | Complete Japan CDS activity | | BIS OTC derivatives statistics | Aggregate global OTC derivatives measures at the published classification | A fixed Japan share without a matching BIS series and date | ### CDS and clearing mechanics JSCC's explanatory page describes the protection leg and the effect of clearing. The transaction's legal terms remain those of its incorporated definitions and confirmation. ^[Sources: https://www.jpx.co.jp/jscc/en/cash/cds/clearing.html; https://www.jpx.co.jp/jscc/en/cash/cds/product.html.] | Element | Evidence-bounded description | |---|---| | Protection buyer | Pays a fixed amount periodically, usually quarterly, during the contract term. | | Credit event | If the contract's credit event occurs, the protection seller makes the contractually specified payment or settlement. | | Reference entity | Is the entity whose credit risk is referenced; it need not be a party to the CDS or exchange cash under it. | | JSCC clearing | JSCC assumes obligations between clearing participants, becomes the counterparty to each side and nets settlement at the JSCC scope. | ### Contract fields and quote interpretation The following table separates clearing-eligibility conditions on the product page from trade-specific economics fixed by the confirmation. ^[Sources: https://www.jpx.co.jp/jscc/en/cash/cds/product.html; https://www.jpx.co.jp/jscc/en/cash/cds/clearing.html.] | Field | Verification rule | |---|---| | Notional and currency | For JSCC eligibility, notional and settlement are JPY; notional is no more than JPY 100 billion and has no decimals. | | Remaining term | JSCC requires at least 1 day when it assumes the obligation; the exact scheduled termination date is trade-specific. | | Fixed-rate payments | JSCC describes periodic payments as usually quarterly; the applicable rate and dates come from the contract. | | Credit-event settlement | Read the incorporated definitions, confirmation and any auction result; a valuation recovery input is not automatically a final settlement price. | | Spread or curve | A quote is date-, tenor-, entity- and contract-specific; no persistent “most watched,” liquidity-tier or directional ranking is inferred here. | ### iTraxx Japan rule boundary The S&P iTraxx Japan rules describe index construction, not JSCC clearing volume or whole-market positions. ^[Source: https://www.spglobal.com/spdji/en/documents/methodologies/iTraxx_Japan_Index_Rules.pdf.] - Rules are reviewed semi-annually before the index roll. - Roll dates are 20 March and 20 September. The corresponding 5-year index maturities are 20 June and 20 December in the fifth year after the roll. - Constituents have equal or approximately equal weights under the rulebook. - Current constituents and version status must be read from the applicable series file; JSCC eligibility must be checked separately on the live JSCC page. ### Market measurement boundary JSCC statistics and BIS aggregates answer different questions. A defensible market-size statement must identify the dataset, reporting period, product perimeter, currency, gross-versus-net basis and whether bilateral and other-CCP transactions are included. This entry therefore does not repeat the former fixed Japan-share, venue-share, dealer-ranking or liquidity claims. ## Related - [[derivatives/INDEX]] - [[derivatives/cds-japan-corporate-spread-mechanics]] - [[derivatives/basis-trade-bond-cds-japan]] - [[derivatives/structured-bond-japan-retail-issuance]] - [[derivatives/structured-product-eb-knockin-japan-retail]] - [[derivatives/japan-irs-market]] - [[derivatives/yen-basis-swap-market]] - [[derivatives/cross-currency-basis-swap-japan]] - [[finance/INDEX]] - [[banking/INDEX]] - [[insurance/japan-life-insurance-alm-overview]] - [[INDEX|FinWiki index]] ## Sources - [JSCC: CDS clearing service scope](https://www.jpx.co.jp/jscc/en/otc/member_cds.html) - [JSCC: live clearing-product list and conditions](https://www.jpx.co.jp/jscc/en/cash/cds/product.html) - [JSCC: CDS and clearing explanation](https://www.jpx.co.jp/jscc/en/cash/cds/clearing.html) - [JSCC: clearing participants and entrustors](https://www.jpx.co.jp/jscc/en/participant/cds/cds2.html) - [JSCC: monthly CDS statistics archive](https://www.jpx.co.jp/jscc/en/cds_archive/index.html) - [S&P Dow Jones Indices: iTraxx Japan Index Rules](https://www.spglobal.com/spdji/en/documents/methodologies/iTraxx_Japan_Index_Rules.pdf) - [BIS: OTC derivatives statistics](https://www.bis.org/statistics/derstats.htm)