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Delivery of securities held by participant firms or their customers in a JASDEC account, resulting from a purchase, sale
or use for collateral, is processed by book-entry transfers between JASDEC accounts
As acceptance of the central custody and transfer system has grown, participants are increasingly using JASDEC accounts for
"transfers for non-exchange trade deliveries(NETD)." These are transfers for purposes to settle the trades other than the trades on the stock exchanges or in the over-the-
counter market. One example is a non-resident investor who has placed a sell order in a Japanese market.
The investor would then have the custodian bank transfer the corresponding shares to the securities company. The trust bank
of the purchaser of those shares would in turn receive the certificates from the securities company, again by book-entry transfer.
The volume of such transfers has now grown to a level exceeding the total
trading volume of stock exchanges and Japan Securities Dealers Association of Automated Quotation.
This growth largely reflects the desire of securities companies and banks to streamline their back office operations.
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