JASDEC Works
Toward Further
Stabilization andGlobalization of
the Japan’sSettlement
Infrastructure

In January 2009, thanks to the efforts of all related parties,
JASDEC accomplished dematerialization of stock certificatesissued by all listed companies as the final step in theimmediate reform of Japan’s securities settlement systems.
JASDEC had already implemented full dematerialization forcommercial papers, corporate bonds, and investment trusts, butwith this dematerialization of stocks, our new Book-entry
Transfer System has been fully established. We will continue
efforts to facilitate the new system as a crucial element ofsocial infrastructure that underpins the growth of the Japanese
economy.
During the fiscal year from April 1, 2008 to March 31,2009, in preparation for the dematerialization of stock
certificates, in August we formulated business regulations forthe new Book-entry Transfer System of Stocks, etc. followingt h e d e m a t e r i a l i z a t i o n . I n S e p t e m b e r, w e c o n d u c t e d n a m eidentification for shareholders and began operation ofParticipants Information System* 1 to manage shareholder
information. In addition, to ensure a smooth transition to thedematerialized stock system, we conducted a mass media
advertising campaign in cooperation with related parties top u b l i c i z e t h e n ew s y s t e m a n d avo i d p r o b l e m s c a u s e d b yshareholders rushing to deposit stock certificates at the lastminute prior to the new system’s enforcement date. After
dematerialization of stocks, we initiated General Shareholders
Notification* 2 to provide issuing companies with shareholder
information managed by Participants Information System.
Focusing on globalization, in April 2008 the first Interim
Meet i n g * 3 o f C en t r al S ecu r i ti es D ep o si t o r i es was held inTokyo. Subsequently, several memorandums of understanding
were concluded for information exchange and cooperative
relationships: in April with Central Depository Company ofPakistan Limited (CDC); in May with the two CSDs in India C e n t r a l D e p o s i t o r y S e r v i c e s ( I n d i a ) L i m i t e d (CDSL) andNational Securities Depository Ltd. (NSDL); in July with

*1: A new system to manage shareholder name identification andparticipant(shareholder) information after name identification (Pleasesee p.20 for more detail)*2 : Shareholders information as of record date notified by JASDEC to issuers*3 : A CSD meeting which is held in addition to the biennial CSD general
meetings

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J a p a n Securi ti es Depo si to ry C enter, Inc. A nn ual R e p ort 2 0 0 9

M e ssage from t he Pre side n t

Thailand Securities Depository Co., Ltd. (TSD); in March2009 with the CSD in Egypt, Misr for Central Clearing,Depository and Registry (MCDR); and in April 2009 with theCSD in Mongolia, Mongolian Securities Clearing House &Central Depository Co., Ltd(MSCH&CD). In addition, welaunched JASDEC Newsletter, a quarterly publication for thedistribution of timely information on our business activities.
During the current business term (from April 1, 2009 toMarch 31, 2010), we will continue efforts to ensure secure andreliable operation of the new Book-entry Transfer Systeminaugurated in January 2009, while also strengthening
cooperation with overseas CSDs to address the ongoing
globalization of settlement systems.
In 2008, the failure of major U.S. financial institutions
caused turmoil in the Japanese capital markets, and we learned
a number of lessons from this financial crisis. JASDEC fullyrecognizes its public role as the central organization withresponsibility for the market’s infrastructure, and we arec o n t i n u i n g t o m a k e e ff o r t s t o e n s u r e t h a t t h e s e c u r i t i e ssettlement infrastructure enables highly reliable, convenient,and efficient securities settlement. Moreover, in response to
the structural and environmental changes occurring in thedomestic and foreign capital markets, we will work ceaselessly
to improve the system to meet the ongoing needs andr e q u i r e m e n t s o f a l l u s e r s , i n c l u d i n g i nv e s t o r s , i s s u i n gcompanies, and market intermediaries.
Lastly, we would like to thank all related parties for theircontinued support and cooperation.

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

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