Message from the President

8Japan Securities Depository Center, Inc. ANNUAL REPORT 2008

JASDEC is accelerating efforts to complete a
new book-entry transfer system prior to dematerialization of stock certificates in January
2009.
JASDEC is aggressively working to develop a newbook-entry transfer—dematerialization of stockcertificates—for securities settlement system reforms.
Acknowledging our public role as an organization
responsible for market infrastructure, we intend to proactively address fundamental changes in domestic andforeign capital markets, as well as operate the businessfor the needs of market participants. By providing ahighly reliable, convenient, and efficient securities
settlement system, we wish to improve the functionsof the securities market, thereby contributing to thedevelopment of society.

Japan Securities Depository Center, Inc. ANNUAL REPORT 2008

9Message from the President

Since the launch of the securities depository and book-entry transfer system forstock certificates issued by listed companies in 1991, we have expanded our services
with various products such as corporate bonds, investment trusts and foreign
stocks. We have also successively upgraded our business functions, including thecommencement of PSMS (Pre-settlement matching system) and DVP settlement
systems for NETDs (non-exchange transaction deliveries) to provide highly reliable,user-friendly and efficient settlement services. On top of these developments, we are
currently promoting preparations for dematerialization of stock certificates for listedcompanies toward implementation in January 2009, as a further significant step forthe reform of securities clearing and settlement system in Japan. As an infrastructure
supporting securities settlement, it is our mission to facilitate the new systemsmoothly.
In fiscal 2007 ended March 31, 2008, the subcommittee for dematerialization ofstock certificates continued to review the practical transition procedures, including
administrative transactions after the dematerialization. In November 2007, wepreannounced the user fee schedule under the new system. In March 2008, we held
briefings for issuers to explain the transition process to the new system. For systemdevelopment relating to the dematerialization, we began testing of the overall system
in March 2008, in advance for preliminary operations regarding the shareholders’data system scheduled to begin in September 2008.
In this fiscal year 2008 ending March 31, 2009, we are completing businessregulations for the new book-entry transfer system of stocks following the dematerialization. We will also conduct full-scale testing of the system, and endeavor toensure that the dematerialization of stock certificates could be implemented smoothly
in January 2009.
In April 2007, JASDEC jointly hosted the 9th Conference of Central Securities
Depositories (CSD9). CSD conferences are held once every two years. The 1stCSD Interim Meeting was also held in April 2008 in Tokyo. In these meetings,
the exchange of information and opinions on international themes pertaining tosecurities clearing and settlement systems were conducted. We will continue to work
for strengthening cooperation with overseas CSDs with a view to establishment ofoperational linkages, thereby proactively addressing the ongoing globalization ofcapital markets. As Japan’s only central securities depository, we are committed toproviding highly reliable, user-friendly, and efficient infrastructure for securities
clearing and settlement.
We would like to thank all of our users, participants, and investors for theircontinuing support and cooperation.

Yoshinobu Takeuchi
President & CEO

10 Japan Securities Depository Center, Inc. ANNUAL REPORT 2008

Japan Securities Depository Center, Inc. ANNUAL REPORT 200811