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Assessment of the Settlement System for Japanese Government Securities against the Recommendations for Securities Settlement Systems

November 20,2007
Bank of Japan

From Bank of Japan

The Bank of Japan conducted the self-assessment of the settlement system for Japanese government securities against theRecommendations for Securities Settlement Systems.

For more information, please see below for the introduction of the report. English version of the full report can be obtained fromset0711.pdf(PDF,516KB).

Introduction

  • In 2001, the Committee on Payment and Settlement Systems (CPSS)1of the Bank for International Settlements (BIS) and the Technical Committee of the International Organization of Securities Commissions (IOSCO)2 jointly prepared and released a report, theRecommendations for Securities Settlement Systems, in consultation with market participants. The report set out 19 recommendations on the legal framework for securities settlement systems (SSSs), risk management, access, governance, efficiency,transparency, and regulation and oversight that are accepted as international standards for the design, operations, and oversight of SSSs. The recommendations are designed to cover SSSs for all types of securities, for securities issued in industrialized and developing countries and traded among domestic and cross-border counterparties. SSSs are broadly defined to include the full set of institutional arrangements for confirmation, clearance, and settlement of securities trades, and safekeeping of securities, and therefore the recommendations are applied broadly to various institutions, from central securities depositories, operators of trade confirmation systems, central counterparties, cash settlement agents, custodian banks, to other relevant parties.
  • This paper provides the assessment of the compliance of the settlement system for Japanese government securities (JGSs)(institutional arrangements for confirmation, clearing, and settlement of book-entry JGSs traded in over-the-counter market) with theRecommendations for Securities Settlement Systems.
  1. The CPSS serves as a forum for the central banks of the Group of 10 (G-10) countries to monitor and analyze developments in payment and settlement arrangements and to consider related policy issues. The CPSS Secretariat is hosted by the BIS.
  2. IOSCO currently comprises securities regulators from more than 100 jurisdictions that have resolved to cooperate to promote high standards of regulation in order to maintain efficient and sound domestic and international securities markets.

Any inquiries should be sent to

Payment and Settlement Systems Department
Bank of Japan

Takashi Hamano (Mr.)
Tel: +81-3-3277-2627
E-mail: takashi.hamano@boj.or.jp