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Revision of"Principal Terms and Conditions Pertaining to the Sale of Bills"

October 13, 2000
Bank of Japan

At the Monetary Policy Meeting held today, the Bank of Japan decided, with respect to bill selling operations, to revise the"Principal Terms and Conditions Pertaining to the Sale of Bills" as below.

This revision is based on"Principles Regarding Revision of Bill Purchasing/Selling Operations", adopted at the Monetary Policy Meeting on April 27, 2000 and publicly released on the same date.

Attached is the revised text of the"Principal Terms and Conditions Pertaining to the Sale of Bills".

  • Article 1 shall be revised as follows:
    1. Purpose
    Unless otherwise stipulated, theseThese Terms and Conditions govern the Bank of Japan's sale of bills issued by it, with the aim of facilitating money market operations.

(Supplementary Provision)

This revision shall become effective on the day of the introduction of RTGS for fund transfers among current accounts held at the Bank of Japan.

Attachment

Principal Terms and Conditions Pertaining to the Sale of Bills

1. Purpose

These Terms and Conditions govern the Bank of Japan's sale of bills issued by it, with the aim of facilitating money market operations.

2. Location of the Operations

At the Bank of Japan's head office (Operations Department).

3. Eligible Counterparties

Eligible counterparties shall, pursuant to the Bank's relevant rules, be selected from financial institutions (as defined in Article 37, Paragraph 1 of the Bank of Japan Law, Law No.89, 1997), domestic and foreign securities companies (Article 10, Paragraph 1, Clause 2 of the Bank of Japan Law Enforcement Order <Order No.385 of 1997> and Article 10, Paragraph 1, Clause 4 of the same Order, respectively), securities finance companies (Article 10, Paragraph 1, Clause 3 of the Order), and tanshi companies (Article 10, Paragraph 1, Clause 5 of the Order).

4. Bills to be Sold

The Bank shall sell bills whose drawers, drawees, and payees are the Bank itself, and whose acceptance the Bank has completed. The maturity date of the bills must be within three months starting from the next date of sale.

5. Selling Method

Bills shall be sold through a discount method. The rate of discount is determined by the conventional method in competitive auction.

6. Sale Dates and Amount of Bills to be Sold

Taking into account the situation in financial markets, the Bank shall determine necessary details, including sale dates, amount of bills to be sold, and counterparties every time it conducts.