International Relationships

JASDEC engages in international activities
to guide the rational development of a global
settlement infrastructure. Research on
overseas trends and information sharing are
key elements of a leadership role.
Honorary Chairman

Yoshinobu Takeuchi

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Annual Report 2014

JASDEC conducts research on overseas trends
and frequent information exchange with overseas
institutions as essential to its ongoing efforts to deal
with the many issues that affect securities market
infrastructure, such as the globalization of financial andcapital markets and the global tightening of regulations.
We participate in regular CSD meetings, seminars andother international conferences and maintain active
exchange programs with institutions with which wehave signed memorandums of understanding (MOUs).
JASDEC is also contributing to the improvementof securities market infrastructure in Japan andinternationally and raising its global presence byplaying an important role in the administration of theAsia-Pacific Central Securities Depository Group (ACG)
and the World Forum of CSDs (WFC), and by providing
various forms of support and assistance in response torequests from emerging countries.

Mutual cooperation with overseas institutions
ACG (Asia-Pacific Central Securities Depository Group)
The ACG was established in November 1997 as a forum for
information exchange and mutual cooperation among CSDs in
the Asia-Pacific region. The ACG has for many years carried out
surveys or other activities through task forces (TFs). In addition
to TFs, the Executive Committee with three-year term wasformed to plan and administer the activities of the ACG frommedium-to long-term perspectives at the 14th General Meetingin December 2010. This committee consists of all TF conveners,
together with representatives of three organizations chosen
through a general vote. Mr. Yoshinobu Takeuchi of JASDEC
served as the first ACG Executive Committee Chairman, while
JASDEC acted as Executive Committee Secretariat until the17th General Meeting.	At the 17th General Meeting in October 2013, the Executive
Committee was renewed upon the expiration of the first
three-year term. The new Executive Committee consists ofeight organizations. The five organizations represented on

the committee through the convener of TFs are JASDEC(Exchange of Information TF), Korea Securities Depository (KSD,New Business Initiative TF), National Securities Depository
Limited (NSDL, Technical TF), China Securities Depositoryand Clearing Corporation Limited (CSDC, Legal TF), and theCentral Depository Company of Pakistan Limited (CDC, Riskand Recovery Management TF). The three organizations
elected to membership through the general vote are Singapore
Exchange (SGX), China Central Depository & Clearing Co.,
Ltd. (CCDC) and Central Depository Services (India) Limited(CDSL). Mr. Muhammad Hanif Jakhura of CDC was appointed
as the new Chairman among representatives of the above eightorganizations and CDC as the new Secretariat. Mr. YoshinobuTakeuchi of JASDEC was appointed ACG Executive Committee
Honorary Chairman. JASDEC will continue to provide leadershipin initiatives to expand and energize ACG activities.

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WFC (World Forum of CSDs)
information exchange and discussion on issues that affect allCSDs. The WFC is administered by a 10-member board madeup of two representatives from each regional association.
JASDEC participates on behalf of the ACG. Mr. Yoshinobu
Takeuchi of JASDEC served as Vice-Chairman until November
2012 and was then appointed Honorary Chairman.

MOUs on Information Exchange and Mutual Cooperation with Overseas CSDs, etc.
JASDEC has been working to develop collaborative
relationships with overseas institutions by signing MOUs on
the exchange of information and mutual cooperation withoverseas CSDs, etc. As of the end of March 2014, JASDEC isin bilateral cooperation with a total of 18 institutions by signing

MOUs. With MOU partners, we are actively implementinginitiatives, including regular exchanges of information, crosstraining programs involving trainee exchanges, and support forCSDs of emerging nations.

ABMF (ASEAN+3 Bond Market Forum)
The ABMI (Asian Bond Markets Initiative), under the Meetingof the Finance Ministers and Central Bank Governors of theASEAN+3 group, comprises four Task Forces (1: charged withpromoting the issuance of local-currency-denominated bonds,
2: facilitating the demand for local-currency-denominated bonds,
3: improving the regulatory framework and 4: improving therelated infrastructure of the bond markets). The ABMF (ASEAN+3
Bond Market Forum) was established under Task Force 3(improvement of regulatory framework), and two sub-forums wereheld. Sub-Forum 1 sought to identify regulatory barriers relating

to bond transactions in general and the creation of the ASEAN+3
Multi-Currency Bond Issuance Framework (AMBIF), while SubForum 2 was concerned primarily with identifying cross-border
settlement operations. The results of these deliberations werecompiled into a Phase 2 final report, which was published in April
2014. Furthermore, Phase 3 studies are currently in progress, andthe final report will be released next year.
JASDEC has participated in the ABMF as the Japanese
representative, and is actively participating in Sub-Forum 2 as theco-vice-chair.

Annual Report 2014

The WFC was created in April 2011 at the 11th Conferenceof CSDs, after agreement was reached among leaders of theworld’s five regional CSD associations. The WFC took over thecollaborative activities among regional associations from theCSD Contact Group, which had been engaged in them during
the previous four years. Its function is to strengthen the influenceof CSDs and disseminate their shared views as a forum ofInternational Relationships

MajorInternationalActivities inFiscal 2013

May 14–15

15th ACG Cross-Training Seminar
The Cross-Training Seminar is a conference for the exchange of information mainly among working
level staff of ACG member institutions. The 15th Seminar was held in Hangzhou, China, hosted
by China Central Depository & Clearing Co., Ltd. (CCDC), a Chinese CSD for bonds. JASDEC as
convener of the Exchange of Information TF assisted the host, and ran the Exchange of Information
TF session and the General session. The topic for the Exchange of Information TF session was“Comparison of risk management measures against fail-to-deliver/participant default”. In the session,
the risk management methods employed by various
institutions were compared, and JASDEC also madea presentation about the DVP settlement system for
non-exchange transaction of JASDEC DVP Clearing
Corporation. In the General session, there was anexchange of views on governance and initiatives
relating to the CPSS-IOSCO “Principles for financial
market infrastructures” (PFMI). Furthermore, in the New
Business Initiative TF session, JASDEC introduced theenhancement of corporate action information services/
implementation of ISO 20022.

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Annual Report 20142013.4

5678May 29–31, May 29

September 18

12th Conference of CSDs and4th WFC Board Meeting

5th WFC Board
Meeting /Sibos 2013

The 12th Conference of CSDs was hosted by the Associationof Eurasian Central Securities Depositories (AECSD) in SaintPetersburg, Russia. Participants representing CSDs fromall over the world attended presentations and took part indiscussions about various themes. Key topics included
issues arising from the global tendency toward more
stringent regulation of financial markets, and the response ofCSDs to those issues, actions relating to the CPSS-IOSCO’sPFMI, and initiatives in new areas of business.
In closing, the top management of CSDs from Japan, theUnited States, Europe, Russia and South Africa took part in apanel discussion about the future of the world CSD industry.
One of the panelists was Mr. Yoshinobu Takeuchi of JASDEC,
who emphasized the importance of macro-prudence acrossall financial and capital markets and spoke about the potential
to use data held by CSDs for this purpose.
The 4th WFC Board meeting was held at the sametime. JASDEC took part as the ACG representative, andMr. Yoshinobu Takeuchi of JASDEC, was appointed as
Honorary Chairman.

JASDEC participated onbehalf of the ACG in the
5th WFC Board meeting,which was held in Dubai,
the United Arab Emirates.
Topics discussed included
the establishment of a new
WFC working group for theapproach to the CPSSIOSCO’s PFMI.

9October 20–21

March 717th ACG General Meeting

Conclusion of an MOU withKPEI of Indonesia

The 17th ACG General Meeting was held in Dhaka, Bangladesh and was hosted
by Central Depository Bangladesh Limited (CDBL), the Bangladeshi CSD. JASDEC
served in its role as the Secretariat for the Executive Committee including a reporton activities during its three-year tenure. Then, eight organizations including
JASDEC were appointed the Executive Committee members, and among them, Mr.
Muhammad Hanif Jakhura of the Central Depository Company of Pakistan Limited(CDC) became Chairman of the Executive Committee. CDC took over the Secretariat
role within the Executive Committee from JASDEC, and Mr. Yoshinobu Takeuchi
of JASDEC was appointed as ACG Executive Committee Honorary Chairman. Inaddition, some action plans
were adopted, notably thecontinuation of the four TFs,
including the Exchange ofInformation TF chaired byJASDEC, and the establishmentof the Risk and Recovery
Management TF.

JASDEC signed an MOU with Kliring
Penjaminan Efek Indonesia (KPEI), aclearing house in Indonesia, with theaim of developing cooperative relations
via information exchange and mutualcooperation.

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2014.1

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September 6

November 19–22, December 3–6

3rd Trilateral Meeting for Information Exchangewith China’s CSDC and Korea’s KSD

Trainee Exchange with KSD

JASDEC participated in the 3rd trilateral meeting held in Jeju,
Korea under the MOU with CSDC (China Securities Depository
and Clearing Corporation Limited), a Chinese CSD for listed
securities and KSD (Korea Securities Depository). The meetingprovided an opportunity for the three companies to share
information about their approach to the CPSS-IOSCO’sPFMI, about their emergency business continuity plans, etc.
JASDEC representatives raised the topics of introduction ofISO 20022/SWIFTNet, and adaptation to the Foreign AccountTax Compliance Act.

JASDEC and KSD held the 3rd trainee exchange
program under their MOU on informationexchange and mutual cooperation. Bothinstitutions accepted trainees, who were mostly
young and mid-tier employees. The program
enabled better reciprocal understanding by
providing the trainees with a general overview
of the activities of each institution, and better
networking among employees.

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