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international relationsHips

JASDeC engages ininternational activities to guidethe rational development of a
global settlement infrastructure.
Research on overseas trends
and information sharing are key
elements of a leadership role.

JASDEC conducts research on overseas trends andfrequent information exchange with overseas institutions
as essential to its ongoing efforts to deal with the many
issues that affect securities market infrastructure, suchas the globalization of financial and capital markets andthe global tightening of regulations. We participate inregular CSD meetings, seminars and other internationalconferences and maintain active exchange programs withinstitutions with which we have signed memorandums ofunderstanding (MOUs).

Honorary Chairman

yoshinobu takeuchi

JASDEC is also contributing to the improvement ofsecurities market infrastructure in Japan and internationallyand raising its global presence by playing an importantrole in the administration of the Asia-Pacific Central
Securities Depository Group (ACG) and the World Forumof CSDs (WFC), and by providing various forms of support
and assistance in response to requests from emerging
countries.

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International Relationships

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 theAsia-Pacific region. The ACG has for many years carried out surveys
or other activities through task forces (TFs). In addition to TFs, theExecutive Committee, with a three-year term, was formed to planand administer the activities of the ACG from medium-to long-term
perspectives at the 14th General Meeting in December 2010. Thiscommittee consists of all TF conveners, together with representativesof three organizations chosen through a general vote.
At the 17th General Meeting in October 2013, the Executive
Committee and the Secretariat were renewed upon the expirationof their terms of service. The new Executive Committee consistsof eight organizations. The five organizations represented on thecommittee through the convener of TFs are JASDEC (Exchange ofInformation TF), Korea Securities Depository (KSD, New BusinessInitiative TF), National Securities Depository Limited (NSDL,Technical TF), China Securities Depository and Clearing Corporation
Limited (CSDC, Legal TF), and the Central Depository Companyof Pakistan Limited (CDCPL, Risk and Recovery Management TF).
The three organizations elected to membership through the generalvote are Singapore Exchange (SGX), China Central Depository &Clearing Co., Ltd. (CCDC) and Central Depository Services (India)
Limited (CDSL). Mr. Muhammad Hanif Jakhura of CDCPL wasappointed as the new Chairman among representatives of theabove eight organizations and CDCPL as the new Secretariat.
As a member of the executive committee and the convener ofthe Exchange of Information TF, JASDEC will continue to provide
leadership in initiatives to expand and energize ACG activities.

WFC (World Forum of CSDs)
The WFC was created in April 2011 at the 11th Conference ofCSDs, after agreement was reached among leaders of the world’s
five regional CSD associations. The WFC took over the collaborative
activities among regional associations from the CSD Contact Group,
which had been engaged in them during the previous four years. Its
function is to strengthen the influence of CSDs and disseminate theirshared views as a forum of information exchange and discussion
on issues that affect all CSDs. The WFC is administered by a
10-member board made up of two representatives from eachregional association. JASDEC participates on behalf of the ACG withCDCPL.

The WFC has an active program of initiatives, including theSingle Disclosure Project, the aim of which is to create a databaseof CSD information by ensuring unified and efficient disclosure of thePrinciples for Financial Market Infrastructures (PFMI) developed jointly
by the Committee on Payment and Settlement Systems* of the BIS
and the International Organization of Securities Commissions (CPSSIOSCO), and response to the questionnaire from the Association ofGlobal Custodians (AGC).
There was also a change in the administration of the Conferenceof CSDs, which, from the 13th Conference (WFC 2015) onwards, isorganized by the WFC and bears the “WFC” name.

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 ofinformation and mutual cooperation with overseas CSDs, etc. Asof the end of March 2015, JASDEC is in bilateral cooperation witha total of 18 institutions through MOUs. With MOU partners, weare actively implementing initiatives, including regular exchanges ofinformation, cross-training programs involving trainee exchanges,and support for CSDs of emerging nations.

The Asian Bond Markets Initiative (ABMI)
The ABMI is being developed under the auspices of the ASEAN+3
Finance Ministers and Central Bank Governors’ Meeting. Four task
forces have been established for the ABMI, the third of which, withresponsibility for improving the regulatory framework, has created
the ASEAN+3 Bond Market Forum (ABMF). Studies are now being
carried out by two sub-forums within the ABMF. Sub-Forum 1 ismainly focusing on the creation of the ASEAN+3 Multi-Currency
Bond Issuance Framework (AMBIF), while Sub-Forum 2 is concerned
primarily with the standardization of cross-border settlement processes
in the region. Phase 1 and Phase 2 activities have already been
completed, and reports have been published. Phase 3 activities are

currently in progress, and an outline report was presented at theFinance Ministers and Central Bank Governors’ Meeting in May 2015.
The full report will be released in the summer of 2015.
As the member representing Japan, JASDEC is actively
participating in the ABMF as the co-vice-chair of Sub-Forum 2. Asa Japanese CSD, JASDEC is also participating in the Cross-Border
Settlement Infrastructure Forum (CSIF). The CSIF was created under
Task Force 4, which is studying improvements to bond market
infrastructure. The CSIF membership consists of central banks andnational CSDs from participating economies.

* The Committee on Payment and Settlement Systems (CPSS) was renamed as the Committee on Payment and Market Infrastructures (CPMI) on 1 September, 2014.

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42International Relationships

MajorInternational
Activities inFiscal 2014

May 20-21• The ACG Cross-Training Seminar washeld in Teheran, Iran. As the convener ofthe Exchange of Information TF, JASDEC
supported the host organization, the Central
Securities Depository of Iran (CSDI), tomanage the event. JASDEC also planned andorganized the Exchange of Information TF
session and breakout sessions.
• During sessions, JASDEC gave
presentations on stock collateral schemes inJapan, and JASDEC’s Business Continuity
Plan (BCP). Participants in the breakout
sessions exchanged views on the promotionof globalization, and crisis management in
the event of system failures.

2014.456April 4

78May 20
• At the 6th Meeting of the WFC
in Zurich, Switzerland, JASDEC
reported on the progress and statusof the Single Disclosure Project,which considers unified and efficient
information disclosure methods for
the CPSS-IOSCO’s PFMI and AGC’squestionnaire, and discussed theway forward for it. The meeting also
approved the establishment of a new
WFC working group for training andinformation exchange relating to thePFMI.

• Under JASDEC’s MOU with KSEI,an Indonesian CSD, a total of 80 KSEI
shareholders, including officers from securities
companies and banks, visited JASDEC
headquarters for discussions centering ongovernance and an overview of operations.

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943International Relationships

October 15-16

March 16-19• JASDEC participated in ACG18 in Xi’an, China. A number of resolutions werepassed at the meeting, including the approval of the Indian Clearing Corporation
Limited (ICCL), which is a subsidiary CCP of the Bombay Stock Exchange,for ACG membership, the selection of Hong Kong as the venue for the 2017
Conference of CSDs (WFC 2017), and the adoption of the “Xi’an Initiative,” themain aims of which are the promotion of best practice by CSDs in the AsiaPacific region, and the facilitation of cross-border securities transactions.

1011

September 8-9• A two-day IT training program wasprovided for two staff members from
the Mongolian CSD, MSCH&CD, withwhich JASDEC has signed an MOU.
The program included an overview of
JASDEC’s IT systems and covered
various aspects, including system
replacement, telecommunications
standardization, BCP, andinformation security.

122015.1

September 28-October 2• At the 7th WFC Meeting in Boston, U.S.A.,
there was an exchange of views about a proposal
formulated by the Single Disclosure ProjectWorking Group for the creation of a database.
• JASDEC participated in Sibos 2014, which wasin Boston on September 29.

Annual Report 2015

• JASDEC welcomed participants in thefourth trainee exchange program underits MOU with Korea Securities Depository(KSD). Five employees from KSD took
part in seminars designed primarily
to provide an overview of JASDEC’s
business operations.

23November 18• At the request of Vietnam Securities
Depository (VSD), with which JASDEC
has signed an MOU, JASDEC
welcomed eight visitors, including
financial officials, for a seminar covering
the DVP settlement system for nonexchange transaction deliveries by
JASDEC DVP Clearing Corporation,
as well as JASDEC’s pre-settlement
matching system, and the investment
trust system.