Operational Procedures for Clearing Brokerage for Interest Rate Swap
September 5, 2012
Amended on February 24, 2014
Amended on September 24, 2015
Amended on February 15, 2016
Amended on April 11, 2016
Amended on March 13, 2017
Amended on December 3, 2018
Amended on April 1, 2023
Amended on October 28, 2024
Japan Securities Clearing Corporation

1. Prerequisites for Clearing Brokerage
Clearing Brokerage for Interest Rate Swap transactions can be conducted if the following
conditions are met:
(1) An IRS Clearing Participant and a Customer have entered into the Interest Rate Swap
Clearing Brokerage Agreement (Exhibit Form 3 of Handling Procedures of Interest RateSwap Business Rules) or Interest Rate Swap Clearing Brokerage Agreement (Exhibit Form
3-2 of Handling Procedures of Interest Rate Swap Business Rules);(2) A Customer has submitted the Letter of Undertaking (Exhibit Form 4 of Handling
Procedures of Interest Rate Swap Business Rules) or Letter of Undertaking (Exhibit Form 42 of Handling Procedures of Interest Rate Swap Business Rules) to JSCC; and(3) The method of requesting a Clearing Brokerage prescribed by JSCC in a public notice(hereinafter referred to as “MarkitWire and Other Methods”) 1 is made available forCustomers
2. Operational Procedures for Clearing Brokerage(1) Application for Clearing Brokerage
When MarkitWire is used, JSCC processes a request for Clearing Brokerage in respect ofIRS Transactions using Bilateral Model of MarkitWire2.
JSCC processes a request for Clearing Brokerage in respect of IRS Transactions using
The method prescribed by JSCC in the public notice entitled “Re: Matters Prescribed as Method of Request forClearing.”
2 If an IRS Clearing Participant desires to undertake clearing brokerage, it must submit to JSCC in advanceCustomer information to feed into in the database of JSCC and MarkitWire.
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DISCLAIMER: This is the reference translation of the original Japanese document. Japan Securities Clearing
Corporation shall accept no responsibility or liability for damage or loss caused by any error, inaccuracy, ormisunderstanding with regard to this translation. This document may not be reproduced or redistributed in whole orin part without the permission of Japan Securities Clearing Corporation.

“SWPM” command or other relevant commands when Bloomberg VCON (VoiceConfirmation) offered by Bloomberg Finance L.P. (hereinafter simply referred to as“Bloomberg VCON”) is used 3 , and “BBTI” command, “SWPM” or other relevant
commands when Bloomberg ETP (Electric Trading Platform) (hereinafter simply referredto as “Bloomberg ETP”) is used4.
a. A Customer which belongs to the same Corporate Group as its Clearing Broker(hereinafter referred to as Affiliate)(a) Registration of IRS Transactions by Affiliate
If an Affiliate requests Clearing Brokerage in respect of IRS transactions using
MarkitWire, it shall register a Client Clearing Deal or Direct Deal on MarkitWire. TheAffiliate shall set its Clearing Broker as Clearing Broker, select JSCC as Clearing Houseand set Yes in Send for Clearing.
If an Affiliate requests Clearing Brokerage in respect of IRS transactions using VCON,
the Affiliate shall set the Clearing Broker in “Dealer FCM,” and select “JSCC” for“Central Cpty.”
If an Affiliate requests Clearing Brokerage in respect of IRS transactions using “BBTI”
command of Bloomberg ETP, the Affiliate shall set the Clearing Broker in “FCM,” andselect “JSCC” for “CCP.”
If an Affiliate requests Clearing Brokerage in respect of IRS transactions using “SWPM”
command of Bloomberg ETP, the Affiliate shall set the Clearing Broker in “DealerFCM,” and select “JSCC” for “Central Cpty.”(b) Transmission of transaction data to JSCC
If an Affiliate and its Execution Broker feed information necessary for request ofClearing Brokerage for an IRS transaction (application for clearing) on MarkitWire andOther Methods, MarkitWire and Other Methods send the transaction data to JSCC. The
transmission of such data indicates the completion of a request of Clearing Brokerage.
JSCC receives such transaction data during business hours for clearing (from 9:00 to12:00, from 13:00 to 16:00 and from 17:30 to 19:00; the same applies hereinafter). After
receiving such data, JSCC performs formality checks on the transaction, and checks if
both parties involved in the application for clearing have deposited with JSCC Initial
Margin exceeding the margin required to clear calculated based on all the positions inthe transaction applied and cleared trades.
3If an IRS Clearing Participant desires to undertake clearing brokerage, it must submit to JSCC in advance
Customer information to feed into in the database of JSCC and VCON.
4 If an IRS Clearing Participant desires to undertake clearing brokerage, it must submit to JSCC in advance
Customer information to feed into in the database of JSCC and Bloomberg ETP.

2/4DISCLAIMER: This is the reference translation of the original Japanese document. Japan Securities Clearing
Corporation shall accept no responsibility or liability for damage or loss caused by any error, inaccuracy, ormisunderstanding with regard to this translation. This document may not be reproduced or redistributed in whole orin part without the permission of Japan Securities Clearing Corporation.

If such transaction data is erroneous, or if the Initial Margin deposited falls short of themargin required to clear, a telegram message stating Reject is sent to MarkitWire andOther Methods5

b. A Customer that does not belong to the same Corporate Group as its Clearing Broker(hereinafter referred to as Client)(a) Registration of IRS transactions by Client
If a Client desires to request Clearing Brokerage in respect of IRS transactions using
MarkitWire, it must register a Client Clearing Deal on MarkitWire and Other Methods.
The Client shall set its Clearing Broker as Clearing Broker, select JSCC as Clearing
House and set Yes in Send for Clearing.
If a Client desires to request Clearing Brokerage in respect of IRS transactions using
VCON or Bloomberg ETP, , it shall follow the same procedures as specified in a. (a)above.
(b) Transmission of Transaction Data to JSCC
If a Client and its Execution Broker registers information in the database of MarkitWire
and Other Methods that is necessary for a request of Clearing Brokerage for IRS
transactions, MarkitWire and Other Methods will send the transaction data to JSCC.
JSCC will perform formality checks to see if the transaction data is erroneous. If it isnot, the transaction data is sent to the Clearing Broker.
(c) Authorization by Clearing Broker
A Clearing Broker shall determine, after receiving the transaction data from JSCC,
whether to approve the Clearing Brokerage relating to the transaction. If the Clearing
Broker approves such a transaction, it means the completion of a request for clearing
for JSCC.
JSCC receives the transaction data concerning the application during business hours forclearing. After receiving the data, JSCC checks if both parties to the clearing applicationhave deposited with JSCC Initial Margin exceeding the margin required to clear,calculated based on all the positions in the transaction applied and cleared trades.
5An IRS Clearing Participant may check transactions relating to the Clearing Brokerage applied by a Customer
using theWeb Portal Registration Status Report (distributed every 15 minutes every JSCC business day from around
8:05 to around 20:05).

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DISCLAIMER: This is the reference translation of the original Japanese document. Japan Securities Clearing
Corporation shall accept no responsibility or liability for damage or loss caused by any error, inaccuracy, or
misunderstanding with regard to this translation. This document may not be reproduced or redistributed in whole orin part without the permission of Japan Securities Clearing Corporation.

If the Initial Margin deposited falls short of the margin required to clear, a telegram
message stating Reject is sent to MarkitWire and Other Methods.
(2) Clearing for Clearing Brokerage
JSCC performs clearing of a trade after confirming that Initial Margin deposited by bothparties are equivalent to or over the margin required to clear, as stated in (1) a (b) or b(c).

3. Treatment of Per Trade Compression for Clearing Brokerage(1) Request for Per Trade Compression
A Customer will request Per Trade Compression to the Clearing Broker using a method
agreed between the Clearing Broker and the Customer.
Upon receipt of a request for Per Trade Compression from a Customer, it shall apply toJSCC for Per Trade Compression through Web Portal+.
(2) Per Trade Compression
Upon receipt of an application for Per Trade Compression as specified in (1) above, JSCC
will confirm a satisfaction of the Per Trade Compression Conditions. If a satisfaction ofthe Per Trade Compression Conditions is confirmed, JSCC will approve the application
for Per Trade Compression, and then Per Trade Compression will become effective.
4. Treatment of Blended Rates Compression for Clearing Brokerage(1) Request for Blended Rates Compression
A Customer will request Blended Rates Compression to the Clearing Broker using amethod agreed between the Clearing Broker and the Customer
Upon receipt of a request for Blended Rates Compression from a Customer, it shall applyto JSCC for Blended Rates Compression through Web Portal+.
(2) Blended Rates Compression
Upon receipt of an application for Blended Rates Compression as specified in (1) above,
JSCC will confirm a satisfaction of the Blended Rates Compression Conditions. If asatisfaction of the Blended Rates Compression Conditions is confirmed, JSCC willapprove the application for Blended Rates Compression, and then Blended Rates
Compression will become effective.
End of Document
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DISCLAIMER: This is the reference translation of the original Japanese document. Japan Securities Clearing
Corporation shall accept no responsibility or liability for damage or loss caused by any error, inaccuracy, ormisunderstanding with regard to this translation. This document may not be reproduced or redistributed in whole orin part without the permission of Japan Securities Clearing Corporation.