Interdealer broker Tullett Prebon has launched a new over-the-counter brokerage firm in Japan for equity derivatives.

The firm’s entry follows proposals by the Japanese Financial Services Agency on December 17 that all standard OTC derivatives should be centrally cleared. The regulator has yet to confirm whether the clearing will be handled by national or international clearing houses.

A spokesperson for Tullett Prebon in London said that if the proposal came into force it would be ready to meet it.

Tim Marshall, managing director of Tullett Prebon’s Tokyo office, said the new brokerage would fulfil a long-held ambition of its parent firm. However, he said the development of the new business had been “accelerated”, with the appointment of Patrick Maloney as its head.

“Our new equity derivatives business will further diversify the product coverage of Tullett Prebon in Japan and will complement our existing equity derivatives business in Hong Kong, which deals with clients based outside the country,” Marshall said.

The London spokesperson said the new equity business would serve Japanese clients interested in Nikkei products.

Colin Packham cpackham@fow.com