Hedge Funds Notch Win at CFTC Over Yen Swap Clearinghouse

Hedge funds secured a victory in Washington after a top Wall Street regulator said it would let a Japanese firm clear yen interest rates swaps for US customers.

Trade groups had asked the Commodity Futures Trading Commission to approve the Japan Securities Clearing Corp. request, arguing it would provide better liquidity. The long-standing request had been controversial because of how JSCC handles customer collateral and bankruptcy protections.