Settlement operations using DVP settlement system for NETDs

With the activation of the system introducing DVP settlement services, the JASDEC PSMS and the Book-Entry Transfer System were also consolidated and, as a result, in cases where settlement instructions entered by each DVP participant(sub-custodian and broker) are matched on PSMS, the DVP Orders are automatically transmitted to the Book-Entry Transfer System

On the basis of the DVP Order transmitted to the Book-Entry Transfer System, firstly a book-entry transfer from the Transferring participant account is made to the JDCC account (this is referred to as 'Execution of DVP Book-Entries' ). Secondly a book-entry transfer to the Receiving participant account is made from the JDCC account (this is referred to as 'Completion of DVP Book-Entries' ).
In the process of completing each book-entry transfer, specific conditions can be imposed to DVP particimant; and only when these conditions are satisfied, the book-entry transfer takes place.

Settlement of funds in the DVP settlement system for NETDs is conducted by using Bank of Japan financial network system (BOJ Net) administered by Bank of Japan (Japan's central bank). DVP participants can settle funds using their own current accounts or a current accounts of settling banks which they designated at Bank of Japan.
On the basis of netted settlement amount participants payers pay settlement amount to the JDCC's current account. Once JDCC has confirmed the payment of all settlement amount from participants payers ,JDCC pays settlement amount to receiving DVP participants in BOJ Net