International Relationships

JASDEC engages year-round in international
activities to guide the rational development ofa global settlement infrastructure. Research onoverseas trends and information sharing are
key elements of a leadership role.

36
Annual Report 2013

JASDEC regards research on overseas trends and timely,
accurate information exchange with overseas institutions
as essential to its ongoing efforts to deal with the many
issues that affect securities market infrastructures, suchas the globalization of financial and capital markets andthe global tightening of regulations. We actively participate
in international forums such as regular CSD meetings andseminars. We also play a key role in administration for theAsia- Pacific Central Securities Depository Group (ACG)

and the World Forum of CSDs (WFC). Through these
activities, we aim to contribute to the development ofsecurities market infrastructures in Japan and worldwide
while also raising the profile of JASDEC.
We are actively developing relationships withorganizations with which we have signed memorandumsof understanding (MOUs), and we provide various forms
of assistance in response to requests from CSDs ofemerging nations.Mutual cooperation with overseas institutions
The ACG was established in November 1997 as a forum for information exchange andmutual cooperation among CSDs in the Asia-Pacific region. In December 2010, an Executive
Committee was established at the 14th general meeting to plan and organize activities frommedium- to long-term perspectives. JASDEC was elected to the Executive Committee
member as convenor of the Exchange of Information Task Force, Korea Securities
Depository as convenor of the New Business Initiative Task Force, National Securities
Depository Limited as convenor of the Technical Task Force and China Securities Depository
and Clearing Corporation Limited as convenor of the Legal Task Force. Central Depository
Company of Pakistan Limited, Singapore Exchange Limited, and Vietnam Securities
Depository were also elected through a general vote. JASDEC Chairman Takeuchi became
the first ACG Executive Committee Chairman.
JASDEC is committed to demonstrating leadership in ACG activities as Secretariat andis making efforts to further invigorate ACG.

World Forumof CSDs

The WFC was created in April 2011 at the 11th Conference of CSDs (CSD11), afteragreement was reached among leaders of the world’s five regional CSD associations. The
WFC continues the collaborative activities undertaken by regional associations under theCSD Contact Group during the previous four years. Its function is to strengthen the influenceof CSDs and disseminate their shared views as a forum of information exchange and debate
on issues that affect all CSDs. The WFC is administered by a 10-member board made upof chairs and vice-chairs from each regional association, and JASDEC participates as anACG representative. Mr. Mohamed Abdel Salam of Misr for Central Clearing, Depository& Registry (MCDR), Egypt, representing AMEDA (Africa and Middle East DepositoriesAssociation) was elected as the Forum’s first Chair, with Chairman Takeuchi of JASDEC as
the first Vice-Chair.

MOUs on informationexchange andmutual cooperation
with overseas CSDs,etc.

As one element of our efforts to build collaborative relationships with clearing and settlement
infrastructures around the world, JASDEC has been following a policy of signing MOUs
on the exchange of information and mutual cooperation with overseas CSDs, etc. As ofthe end of March 2013, JASDEC had signed MOUs with a total of 17 institutions. We arestrengthening our cooperative relationships with our MOU partners through active initiatives,
including regular exchanges of information, cross-training programs involving trainee
exchanges and support for CSDs of emerging nations.

ABMF (ASEAN+3 Bond
Market Forum)

The ABMI (Asian Bond Markets Initiative), under the Meeting of the Finance Ministers andCentral Bank Governors of the ASEAN+3 group, comprises four Task Forces (charged with 1:
promoting the issuance of local-currency-denominated bonds, 2: facilitating the demand for
local-currency-denominated bonds, 3: improving the regulatory framework and 4: improving
the related infrastructure of the bond markets). The ABMF (ASEAN+3 Bond Market Forum)
was established under Task Force 3 (improvement of regulatory framework), and two subforums were held. Sub-Forum 1 sought to identify regulatory barriers relating to bondtransactions in general, while Sub-Forum 2 was concerned primarily with identifying crossborder settlement operations. The results of these deliberations were compiled into a Phase 1
final report, which was published in April 2012. Also publication of a final report for Phase 2 isplanned for the end of 2013.
JASDEC has participated in the ABMF as the Japanese representative and is actively
participating in Sub-Forum 2 as the co-vice-chair.

37
Annual Report 2013

Asia-Pacific CentralSecurities
Depository GroupInternational Relationships

Major International Activities in Fiscal 2012

April 24

May 29–31

MOU with CCDC of China
JASDEC signed a Memorandum of

14th ACG Cross-Training
Seminar

Understanding (MOU) with China Central

At the 14th ACG Cross-Training Seminar for

Depository & Clearing Co., Ltd. (CCDC), a

Asia-Pacific Central Securities Depository

Chinese CSD, with the aim of developing

Group (ACG) in Mumbai, India, JASDEC as

cooperative relations via information

convenor of the Exchange of Information Task

exchange and mutual cooperation.

Force assisted the host, Central Depository
Services (India) Limited (CDSL), and ran the
Exchange of Information Task Force session
and General sessions. In these sessions,
JASDEC presented on such topics as thesettlement processes and account structurein the Japanese market, application of laws
in cross-border securities transactions,approaches for the advancement of JASDEC
systems, and mitigating the risk of stock
lending settlement.

38Annual Report 20132012.45678June 4

September 19

September 20–21

2nd WFC BoardMeeting

16th ACG General Meeting

As secretariat of the World

Second Trilateral Meeting forInformation Exchange with China’s
SD&C and Korea’s KSD

Forum of CSDs (WFC),

JASDEC planned and managed the second trilateral

JASDEC planned andmeeting under the MOU with SD&C (China Securities

managed its second meeting

Depository and Clearing Corporation Limited) and KSD

held in Zurich, Switzerland.

(Korea Securities Depository), held in Bali, Indonesia. The

JASDEC’s Chairman

companies exchanged information on business plansTakeuchi served as Vice-and recent major projects, and JASDEC introduced

Chair. Attendees discussed

the enhancement of its corporate action information

issues including a project todistribution service, its handling of J-Sukuk (Islamicstudy unified and efficientbonds) that utilize special purpose trust beneficiary rights

response to regulatory

and other topics.

authorities information
disclosure requests to CSD.

JASDEC served as Secretariat for the 16th
ACG General Meeting held in Bali, Indonesia,
hosted by PT Kustodian Sentral EfekIndonesia (KSEI), an Indonesian CSD, andKliring Penjaminan Efek Indonesia (KPEI), anIndonesian CCP. Resolutions were adopted
regarding Iran and Nepal’s CSDs becoming
ACG members and the ACG’s and WFC’scomments on CPSS-IOSCO Report on theRecovery and Resolution of Financial Market
Infrastructures.

9October 28–29

November 1

3rd WFC Board Meeting/Sibos 2012
The third WFC meeting was held in Osaka, Japan. JASDEC

MOU with Depozitarul
Central of Romania

served as Secretariat and was responsible for planning andJASDEC signed a MOU withorganizing. JASDEC’s Chairman Takeuchi served as Vice-November 14–18,
November 28–
December 2
Trainee Exchangewith KSD

Depozitarul Central (DC), Romania’sChair. Attendees discussed the CPSS-IOSCO Principles
for Financial Market Infrastructures and WFC’s future
management structure, etc. JASDEC also participated in Sibos
2012 in Osaka, where Chairman Takeuchi lectured on Asia-CSD, with the aim of developing theJASDEC and KSD held thecooperative relations via information

2nd trainee exchange programexchange and mutual cooperation.

under their MOU on informationexchange and mutual

Pacific initiatives affecting securities market infrastructures.

cooperation. Both institutions
accepted trainees, who weremostly young employees.
The program enabled better
reciprocal understanding byproviding the trainees with ageneral overview of the activitiesof each institution and better
networking among employees.

3911122013.1

23

December 4–5

January 31February 1

Information Exchange
Conference with VSD ofVietnam

MOU withTAKASBANK of Turkey

MOU with MKK of Turkey

JASDEC signed MOU with ISE Settlement

Kurulusu A.S. (MKK), Turkey’s CSD, withJASDEC and Vietnam Securities Depository

and Custody Bank Inc. (TAKASBANK),the aim of developing cooperative relations(VSD), Vietnam’s CSD, held an information

Turkey’s fund settlement bank, with thevia information exchange and mutual

exchange conference in Danang, Vietnam

aim of developing cooperative relations

cooperation.

under their MOU on information exchange

via information exchange and mutualand mutual cooperation. At the conference,cooperation.

both institutions made presentations on theirbusiness strategies and recently introduced
services, and JASDEC explained the ETF
settlement system and ISIN numbering
procedure in the bond settlement system.

JASDEC signed MOU with Merkezi Kayit

Annual Report 201310