The following table shows the primary differences between DVP settlement for NETDs and exchange trade deliveries.
| DVP settlement for NETDs | DVP settlement for exchange trades deliveries | |
|---|---|---|
| CCP | JASDEC DVP Clearing Corporation (JDCC) | Japan Securities Clearing Corporation (JSCC) |
| Transactions Subject to Clearing | Non-exchange transactions designated by Participants (Customer Side) | Exchange trades (Street Side) |
| Participant | Brokers, Trust Banks, Custodian Banks | Brokers |
| Method of Settlement (Securities-Funds) | Gross-Net | Net-Net |
| Timing of Obligation Assumption | Settlement date | Trade date |
| Guarantee of Settlement | JDCC assumes obligations in relation to individual transactions only if Transfer Condition is met. JDCC fulfills obligations for payment on behalf of a defaulting participant. |
JSCC assumes obligations in relation to all trades executed at exchanges. JSCC fulfills obligations for payment and delivering stocks on behalf of a defaulting participant. |
Related pages
Please refer to the following for information about JDCC (established June 2003 and wholly owned by JASDEC) which is the main operator of the DVP settlement system for NETDs.
For enquiries about the DVP settlement system for NETDs please contact:
Copyright(c) 2002-2012 Japan Securities Depository Center inc. All rights reserved.
