Management Message

08
Annual Report 2014

Haruhiko Kato
President & CEOJapan Securities Depository Center, Inc. (JASDEC) plays a vital role in financial and capital
markets as a provider of securities settlement infrastructure. We are determined to earn
and maintain the confidence of users by working to improve our systems and services.
We continually strengthen our capabilities in order to offer world-class functions based oninternational standards for settlement systems.

Initiatives in FY2013
Our ongoing efforts in FY2013 (the year to March 31, 2014) under our Medium-Term Business Plan(FY2013–2015) focused primarily on the following measures.

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Launch of New System

Annual Report 2014

Enhancement of Corporate Action Information Dissemination Service

JASDEC launched its new system in January 2014
under close cooperation with various organizations.

JASDEC and the Tokyo Stock Exchange (TSE) have

The new system resulted from a review of our system

jointly developed enhanced information services,

structure to enhance our capability to provide highincluding corporate action (CA) information. The newstandards of security and efficiency. We also took thissystem is based on the Tokyo Market Information

opportunity to introduce functional enhancements(TMI) system operated by the TSE and combinesand system improvements, including DVP settlement

both companies’ data and expertise. It has been fully

for stock lending and borrowing transactions, andoperational since February 2014.

tolerance matching for non-residents’ transactions.

This new service provides an expanded range of
information created by adding information handled

Implementation of International Standards—
adoption of ISO 20022 and SWIFTNet

by JASDEC, including basic information about
corporate bonds, investment trusts, and foreign
stocks. CA information about Japanese stocks is

To coincide with the launch of our new system, wedisseminated under the ISO 20022 standard. Users

also adopted a next-generation messaging system

now have one-stop access to electronic data,

based on ISO 20022 to apply international standards

including CA information about Japanese securities

to non-resident transactions. We also configured ain an international format by means of highly efficient

new system to allow connection via SWIFTNet, which

straight through processing (STP).

is used by financial institutions globally.

Management Message

Support for the Social Security and Tax
Number System

event of a disaster, systems failure or other contingency.
In FY2013 we conducted drills more practically than everbefore with the aim of strengthening our BCP structure.

In May 2013, the Japanese government promulgated theLaw Concerning the Use, etc., of Numbers to Identify

International Activities

Specific Individual for Official Administrative Procedures.
The Social Security and Tax Number system will be

At the international level, we are actively involved in

introduced in January 2016, and in July 2013 JASDEC

information exchange and other networking initiatives

issued outline requirements for these systems in relation

with overseas Central Securities Depositories(CSD),

to the Book-Entry Transfer System for Stocks, etc.

etc. As secretariat for the Asia-Pacific Central Securities
Depository Group (ACG), JASDEC provided planning

Risk Management Activities

and administrative support for the organization until the17th ACG general meeting in October 2013, at which

10Annual Report 2014

JASDEC has introduced various measures to control

Mr. Takeuchi Yoshinobu became honorary chairman

operational and system risks. These activities arefollowing his chairmanship of ACG. JASDEC also

coordinated by the Risk Management Committee.

participated in discussions at the Conference of CSDs

In FY2013, we also renewed our certification under

and the World Forum of CSDs (WFC) about issues

ISO 27001, the standard for information security

affecting CSDs, including adaptation to “Principles

management systems (ISMS).

for financial market infrastructures” (PFMI) which

Because of the public importance of securities

were announced by CPSS-IOSCO in April 2012 as asettlement infrastructure provided by JASDEC, ourresponse to the global trend toward tighter regulation

Business Continuity Plan (BCP) is designed to ensureof financial markets.

the continuity or rapid restoration of our services in thePriorities for the Future
Outlined below are our basic management policies and main priorities for FY2014 under our MediumTerm Business Plan (FY2014–2016).

Organizational Reinforcement Based onPFMI, etc.

and Book-entry Transfer Institutions, which werepromulgated by Japan’s Financial Services Agency
in December 2013. We will also intensify our efforts

JASDEC will continue to strengthen its businessto control operational risks and system risks. At thefoundation, its organization, financial administration

same time, we will further strengthen our businesssystems and human resource development systems,

continuity structure to improve our readiness in thein accordance with PFMI, and the Comprehensive

event of a disaster or systems failure. In addition, we

Guidelines for Supervision of Clearing Organizations

will continue to enhance our systems infrastructure,including the introduction of advanced technology andand gains. In October 2015, the new BOJ-NET (Bankthe formulation of IT plans.

of Japan Financial Network System) will become

In FY2014, we are making a number oforganizational changes based on these commitments.

operational. We will steadily develop the systems
needed to adapt effectively to these changes.

Specifically, we have created the Risk Management
Department and the IT Strategy Department. The main

Reinforcement of System Infrastructuretask of the Risk Management Department is grouplevel risk management and comprehensive planningWe will continue to strengthen our operation andrelating to the business continuity management. The

management structures to ensure that the new systemtasks of the IT Strategy Department are the overall

launched in January 2014 continues to operate

planning of our IT strategy and the reinforcement ofreliably. We will also start to explore approaches toour system risk management structures.

the achievement of further improvements, through theWe will enhance our risk management capabilities

planning of a next-generation system.

and strengthen our initiatives in this area by developing
a company-wide risk management structure centering

Enhancement of BCP

on the Chief Risk Officer (CRO) and Integrated Risk
Management Council.

We are now looking at ways to strengthen our businesstsunami and nuclear accidents, based on lessons learned
from the Great East Japan Earthquake. We will also
undertake a comprehensive review of our contingency

In January 2016, the Social Security and Tax Number

planning and continually implement practical drills toSystem will take effect and the government will also

ensure the prompt and reliable restoration of our services

introduce integrated taxation on financial incomein the event of a system failure.

We remain committed to the reliable operation of our systems and the provision of services,
including adaption to structural changes in the domestic and international markets, andchanges in users’ needs. We will also continue to review our administrative systems andimprove our operations with the aim of providing our services at the lowest possible cost. We
look forward to continuing support and cooperation with all concerned.

Haruhiko Kato, President & CEO

Annual Report 2014

continuity plan to reflect new risk factors, such as

Appropriate Response to New SystemicReforms

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