| (1)Complete Dematerialization |
 |
Issuers are able to issue
in dematerialized form and investors are not allowed to request issuance of bond certificates. |
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Reduction in issuance cost
is expected, because no certificates are needed, including sample bond certificates and spare bond certificates. |
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| (2)Book-Entry Transfer System by balance management |
|
Maintenance
of smooth settlement by introduction of Book-Entry Transfer
System which enables right transfers by electronically
recording the increase and the decrease of the balance
in the Transfer Account Book, instead of the management
of serial numbers. |
|
| (3)Multi-layer Holding Structure |
|
Multi-layer
holding structure shall be composed of Book-Entry Transfer
Institution, Account Management Institutions and investors.
Account Management Institutions can be positioned in
a multi-layer holding structure in order to enable flexibility
of business development for Account Management Institutions
and affiliation among international institutions. |
|
| (4)DVP(Delivery Versus Payment) |
|
Reduction of
settlement risks has been improved due to DVP settlement,from issuance to redemption, including transfers. |
|
| (5)STP(Straight-through Processing) |
|
Business operation
efficiency has been improved by linking with the pre-settlement
matching system (PSMS), which realizes the straight-through
processing from trade matching to settlement. |
|
|
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Eligible Securities |
|
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Corporate bonds |
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Municipal bonds |
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Investment company bonds |
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Corporate bonds issued by mutual companies prescribed in the Insurance Business Act |
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Specified corporate bonds prescribed in the “Law Concerning Liquidation of Assets” |
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Rights that should be represented by bond certificates issued by companies under special law |
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Rights
that should be represented by bond certificates
issued by any government or by companies in foreign
countries, such as Samurai Bonds. |
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