Management Message

As an important part of social infrastructure,
JASDEC is steadily making progress on essential issues

As many of our readers will be aware, JASDEC has

We have been involved in a wide range of internationalchanged significantly since launching its original deposi-activities to enhance settlement systems (both in Japan

tory and book-entry transfer business in 1991. We haveand abroad) and to pave the way for better cooperation

gradually increased our range of services to include

with overseas central securities depositories (CSDs) andcorporate bonds, investment trusts and foreign stocks,

other institutions.

and at the same time transformed our functionality withSince 2007 we have played a leading role in CSD

the introduction of the Pre-Settlement Matching System

Contact Group conferences, which serve to facilitate(PSMS), DVP settlement services for non-exchange

strong ties between CSD associations in each region. For

transaction deliveries (NETDs), and complete demateri-the 11th Conference of CSDs (CSD11) held in April 2011

alization of stock certificates.

we adopted an evolved organizational form as a WorldNow we must overcome new challenges and continueForum of CSDs (WFC), enabling even closer cooperation

our efforts to optimize our systems as a crucial element

between regional CSD entities. And as the convenor ofof social infrastructure that underpins the Japanese

the working committee discussing the structural reor-economy.

ganization of the ACG (Asia-Pacific Central Securities

During the fiscal year ended March 31, 2011, weDepository Group), we prepared a reorganization plan.

advanced our preparations towards the introduction ofAt the 14th General Meeting of the ACG held in Mumbai,

ISO20022 message standards, the next-generation inter-

India in December 2010, the delegates approved thenational standards and the SWIFT network, as part of ourestablishment of an Executive Committee (with three-efforts to be compliant with the international standards.

year tenures for members) to be responsible for planning

We have been participating in the ISO/TC68 securities

and organizing ACG activities with a medium- and long-

SEG (Standards Evaluation Group) and taking part in theterm perspective.

actual development of several ISO20022 message formats.

We also promoted exchanges with countries that are

During this fiscal year, we completed our comparative

signatories to Memorandums of Understanding (MOU).

study of message formats we use in settlement match-We held information exchange meetings with Korea

ing for domestic transactions and ISO20022 message

Securities Depository in April and in September 2010.

formats.

Following a request from Mongolian Securities Clearing*ISO (International Organization for Standardization) is the non-governmental organization that was established in 1947 in order to facilitate international coordination andunification of industrial standards (Headquarter office: Genève)*TC (Technical Committee) 68 is one of the committees in ISO, facilitating the standardization in the field of banking, securities and other financial services.

2Japan Securities Depository Center, Inc. Annual Report 2011

Management Message

House & Central Depository Co., Ltd., we provided IT
assistance in May 2010, and in August we held a seminarin Ulaanbaatar, Mongolia for Mongolian regulatory
authorities and government officials. These are examplesof the work we are doing to support the rapidly growing
securities markets in Asia and to contribute to the development of the Japanese securities market.
Looking ahead, for the year to March 2012 we intend tocontinue ensuring the smooth and reliable operation of ourexisting systems and services, while acting on feedback fromusers relating to our system and management methods,
improving functionality and convenience, and optimizing
our infrastructure to meet the needs of a wide range ofmarket participants. We will also strengthen cooperation
with overseas CSDs to address the ongoing globalization ofsettlement systems. We remain keenly aware of our social
responsibilities as the central body for the provision of thesecurities clearing and settlement infrastructure that underpins the capital markets, and we are dedicated to providing
highly secure, convenient and efficient services. We verymuch appreciate your support over the past years, and lookforward to serving you in the future.

Haruhiko Kato, President & CEO

Yoshinobu Takeuchi, Chairman*CSD	A Central Securities Depository is an organization that conducts administrative operations for account-based book-entry transfers related to the movement (and registration)of securities corresponding to the delivery of spot stocks traded on securities exchanges, etc. CSDs conduct safekeeping of such securities in a concentrated manner onbehalf of individual investors and thus help eliminate the ‘paper-crisis’ of back-office settlement by securities companies and other financial institutions.
*ACG (Asia-Pacific Central Securities Depository Group) is an organization established in November 1997 to promote information and cooperation among securities depository
and clearing institutions in the Asia-Pacific region.
Japan Securities Depository Center, Inc. Annual Report 20113