Leading
WayFuture
theto theMessage from the President

8 - 9

Special Feature
The Dematerialization of Stock Certificates

10 - 13

Corporate Governance

14 - 17

Business Overview

Book-Entry Transfer System for Stocks, etc.

18 - 21

Book-Entry Transfer System forCommercial Papers and Corporate Bonds

22 - 27

Contents

Book-Entry Transfer System for
Investment Trusts

28 - 31

Japan Securities Depository Center, Inc.
Annual Report 2009

DVP* Settlement Services for NETDs**

32 - 35

Pre-Settlement Matching System (PSMS)***

36 - 39

Custody Services for Foreign Stocks, etc.

40 - 43

International Relationships

44 - 47

Analysis of Business Performance andFinancial Results

48 - 49

Financial Section

Consolidated Financial Statements

50 - 62

Report of Independent Auditors

63History

64 - 65

Corporate Data

66 - 67*	DVP: Delivery versus Payment. This system simultaneously attaches
specific conditions to the delivery of and payment for securities.
** NETDs: non-exchange transaction deliveries***	Pre-Settlement Matching System (PSMS): This central matching system
automatically confirms the contents of trade and settlement, such as trade
names/amounts, counterparties and account numbers.

Leading the Way

A strengthened settlement
infrastructure and greater globalization:

as Infrastructure

JASDEC’s securities clearing and settlement infrastructure serves as a solid
foundation for the capital markets in Japan. We are committed to improving
certainty and efficiency in our services and further reducing the cost for issuers andfinancial intermediaries. In January 2009, the dematerialization of stock certificates
was successfully launched, enabling the entire process for securities transactions
from trading to settlement to be conducted electronically and seamlessly, without
any manual intervention. JASDEC also fully understands its public responsibilityand focuses on providing more reliable and secure clearing and settlement services.
Dematerialization not only eliminates the risk of loss or theft of stock certificates,
but also reduces the risk of clerical or administrative errors. JASDEC has realized asafe and secure transaction system to meet investors’ needs and protect their assets.
In addition, JASDEC has begun initiatives to address the growing trend
towards cross-border consolidation of capital markets. To offer functional
excellence in services to meet the operational demands of a more global market,

JASDEC is expanding its services for
greater efficiency and reliability
JASDEC is working to achieve rapid improvements in operational processes anddevelop new businesses in a flexible manner. In May 2006, JASDEC launched acustody and book-entry transfer system for foreign stocks. Keeping a close eye on
current trends in the standardization of securities clearing and settlement systems for
major markets, JASDEC is making steady progress in the internationalization of itssystems. We believe these efforts will help strengthen the competitive position ofJapanese securities markets. In the field of external activities, JASDEC is also working
to enhance communication with central securities depositories (CSDs) around theworld. In addition to information and personnel exchanges, we have signed
memorandums of understanding to develop cooperative relationships with overseas
CSDs. In line with fundamental changes in the market environment both in Japan andoverseas, as well as in the market’s structure, JASDEC is committed to promoting
further reform of its securities clearing and settlement system through the adoption ofglobal standards in Japan.

as Globalization

Ceaseless efforts with clear vision bring about agreat progress in human life.
In previous times, human beings generated
safety and convenience of the public byconstruction of urban infrastructure.
Furthermore, they opened up new possibilitiesof human life by explorating new lands anddeveloping urban areas.
Japan Securities Depository Center, Inc.

to the Future(JASDEC), as the organization responsible forthe reform of Japan
Japan’ss securities clearing andsettlement infrastructure, is working to realize
more reliable and secure clearing andsettlement services to meet the diverse needs ofinvestors, issuing companies, and financialintermediaries. At the same time, we are
keeping a close eye on developments in major
overseas markets, with the goal of modifying
our system for high compatibility with global
standards.
We will make sustain efforts incontributing to improvement of function incapital markets and development of the society
as a whole, and leading the way to the brighter
future.