In Europe and North America, the global financial crisis was responsible for a large increase in the number of failed settlements under OTC derivatives. Therefore, the FSA has stated that the clearing of OTC derivatives transactions should be subject to mandatory central counterparty (CCP) clearing to reduce settlement risk. In addition, to increase transparency in the OTC derivative markets, the FSA has stated that information on OTC derivatives transactions should be submitted to the authority by trade repositories and CCPs.

With regard to purchases and sales of Japanese government bonds (JGBs), the clearing services offered by the Japan Government Bond Clearing Corporation (JGBCC) are used in only about 40% of all transactions. To encourage use of the JGBCC, the FSA has suggested that it be strengthened by shortening the settlement process and by establishing rules applicable to failed settlements. The FSA has indicated that it will prepare proposals regarding the mandatory use of CCP clearing or for DVP settlement by the end of 2010.

Currently, securities companies are generally regulated and supervised on a non-consolidated basis. However, because the structures of securities companies continue to become large and complex, the FSA considers it necessary for securities companies to be regulated and supervised on a consolidated basis.

In view of the cross-border nature of the activities engaged in by hedge funds, a common global understanding has emerged that authorities in each country should harmonise the regulation of them as much as possible, particularly with regards to the items required to be reported on an ongoing basis.

With regard to the short selling of securities, the following temporary measures were also adopted (until 31 January 2010):

While these measures were temporary, the FSA has stated that it will continue to consider the appropriateness of making such measures permanent.