Message from the President

JASDEC embarks on a new chapter following
the successful reform of Japan’s security
settlement system
As many of our readers will be aware, JASDEC haschanged significantly since launching its original depository and book-entry transfer business in 1991. We have
gradually increased our range of services to include
corporate bonds, investment trusts and foreign securities,
and at the same time transformed our functionality
with the introduction of the Pre-Settlement Matching
System (PSMS), DVP settlement services for nonexchange transaction deliveries (NETDs), and complete
dematerialization of stock certificates. Until now, ourobjective has been simple and clear: to pursue innovationin securities settlement systems. But now we must search
for new challenges, and create new objectives. Andwhile this search is in one sense a challenge in itself, wewill continue our efforts to optimize our systems as a
crucial element of social infrastructure that underpins theJapanese economy.
During the fiscal year ended March 31, 2010, weestablished the ISO20022 Subcommittee. The role ofthis committee is to consider the introduction of the nextgeneration message standard ISO20022 and the SWIFT
network, as part of our efforts to meet international
system standardization requirements. We are looking
closely at all areas of our business, both horizontally andvertically, with the aim of identifying specific initiatives
that can contribute to greater system efficiency.

2Jap an Secu ritie s Deposito ry C e n te r, I n c . A NNUA L R E P O RT 2 0 1 0

Globalization in our industry is continuing apace, andas the development of effective cross-border settlement
procedures progresses in the U.S. and Europe, similar
trends are beginning to appear in Asia. As one element of
our own efforts to address the globalization of securities
settlement, and to ensure that a Japanese viewpoint isrepresented in global discussions, we have been gatheringand sharing information through our participation in theconference of Central Securities Depositories (CSDs) andthe general meeting of Asia-Pacific Central Securities
Depository Group (ACG), and through attendance at
the Group of Experts (GoE) meetings of the Asian Bond
Markets Initiative (ABMI).
While supporting the rapidly growing Asian markets
overall, we aim to contribute to the development of theJapanese securities market. We have been strengthening
cooperative relations within the Asian region by expanding our information-sharing and cooperative alliances,including signing Memorandums of Understanding(MOU) with Mongolia, Vietnam, and Indonesia, launching regular discussions with current cooperative partners,
China and Korea, and accepting trainees from the CSD inThailand.

Looking ahead, for the year to March 2011 we intend
to continue smooth and reliable operation of our existing
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 globalizationof settlement systems.
We remain keenly aware of our social responsibilities
as the central body for the provision of the securities
clearing and settlement infrastructure that underpins thecapital markets, and we are dedicated to providing ahighly secure, convenient and efficient services.
We very much appreciate your support over the pastyear, and look forward to serving you in the future.

Yoshinobu Takeuchi
President & CEO
Japan Securities Depository Center, Inc.

J a p a n S e c u r i t i e s D e p o s i t o r y C e n t e r , I n c . A N N U A L REPORT 20103