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Framework for Improving the Network Infrastructure of the BOJ-NET

February 10, 2003
Bank of Japan

The Bank of Japan is preparing further improvements in the network infrastructure of the BOJ-NET, to incorporate recent innovations in network technology and to conform to international standards.The proposal for this enhancement plan was released for public comment on January 25, 2002.After giving due consideration to the comments received, the Bank decided in March 2002 to implement the plan.1The major points of the plan are as below.

  1. Documentation for public consultation and the comments received are available in Japanese on the Bank's Web site.

1. Improving Computer-to-Computer Connection

The Bank plans to introduce a new computer-to-computer connection method, with the following changes: (1) the BOJ-NET will use TCP/IP as its transmission protocol; (2) CORBA2 will be introduced as the transmission interface to process individual messages on a real-time basis; and (3) line speed will be increased.

The Bank plans to complete the necessary system adjustments for the new computer connection method in the first half of fiscal 2004, which begins in April 2004.Connectivity tests will follow for BOJ-NET participants that wish to use the new computer connection method.BOJ-NET participants will have the option of using either the existing computer connection method or the new one during a transition period of at least three years after the introduction of the new method.By the end of that period, however, all participants will be expected to switch to the new method.

  1. 2Common Object Request Broker Architecture, a standard international specification for interfaces in networks.

2. Enabling PC-Based Connection

The Bank intends to introduce PC-based connections at the earliest possible stage, while keeping in mind the importance of security, operational reliability, and users' other needs.Technical feasibility studies aimed at replacing the current dedicated BOJ-NET terminals with PCs are now underway.

Dedicated BOJ-NET terminals will continue to be usable for a certain period even after PC-based connections are introduced.

3. Ensuring Flexibility with regard to Message Format

The Bank plans to make adjustments to the BOJ-NET so that it will accept formats based on international standards.

In addition to the existing proprietary message format, participants in the BOJ-NET Funds Transfer System (using either dedicated terminals or computer-to-computer connections) will be able to use a new message format based on the SWIFT format, similar to those currently used in the Foreign Exchange Yen Clearing System.

For participants in the BOJ-NET JGB Services using the new computer connection method, a new message format based on ISO15022 will be made available for instructions for JGB transfers, in addition to the existing proprietary format.

The Bank intends to complete the necessary system adjustments for accepting these new message formats in the first half of fiscal 2004 at the latest.