Japan

FSA commissioner Toshihide Endo wants struggling regional lenders to engage with customers and help them grow, as a way to boost bank profitability and regional economies.

The rule will be stricter than the 4x leverage limit imposed by the Japan Virtual Currency Exchange Association, the industry's self-regulatory organisation.

The guidebook is aimed at facilitating the smooth entry of asset management and other financial instruments businesses into Japan's capital markets.

HKEX has announced that its central counterparty subsidiary, OTC Clear, has received approval to offer client clearing services to banks in Japan.

The guide seeks to help firms subject to margin rules analyse multiple foreign rule sets, identify situations in which different rules apply, and improve understanding on substituted compliance.

Two Japan Post Holdings subsidiaries are required to suspend insurance product sales for three months and submit business improvement plans by end-January.

The transition to three market sections is expected to be completed within H1 2022, but the changes will be implemented gradually in phases to mitigate the impact on listed companies.

In light of the potential legal issues that may arise from a CBDC issuance by the Bank of Japan, more detailed discussion is needed.

The changes add expectations that sustainability issues will be considered in the investment process, and introduce expectations for service providers.

The ETF lending facility is likely to reduce ETF bid/ask spreads and provide an easy way to short the Japanese market.