Japan CDS market overview
ConfidenceLikelyUpdated2026-07-29Review by2027-01-29Sources7Machine-translatedOriginal (JA)
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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 and describes the public evidence available for Japan CDS products and clearing. Read Japan corporate CDS spread mechanics for single-name pricing, bond-CDS basis trade for relative-value mechanics and Japan IRS market for the rates context.
For adjacent funding and balance-sheet context, see yen basis swap market, cross-currency basis swap Japan, finance index, banking index and 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
- INDEX
- cds-japan-corporate-spread-mechanics
- basis-trade-bond-cds-japan
- structured-bond-japan-retail-issuance
- structured-product-eb-knockin-japan-retail
- japan-irs-market
- yen-basis-swap-market
- cross-currency-basis-swap-japan
- INDEX
- INDEX
- japan-life-insurance-alm-overview
- FinWiki index
Sources
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