Account balances administration service fees

Outline

Service contents

Administration of the Transfer Account Book for Corporate Bonds during the holding period

Parties to Pay

JASDEC participants

Fee rates

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Scale	Monthly average account balance for each JASDEC Participant	Rate (annualized)
Range 1	The portion up to ¥500 billion	Base rate = 0.065bp^*
Range 2	The portion over ¥500 billion & up to ¥1 trillion	60% of base rate
Range 3	The portion over ¥1 trillion & up to ¥5 trillion	40% of base rate
Range 4	The portion over ¥5 trillion & up to ¥10 trillion	20% of base rate
Range 5	The portion over ¥10 trillion & up to ¥20 trillion	10% of base rate
Range 6	The portion over ¥20 trillion & up to ¥30 trillion	5% of base rate
Range 7	The portion over ¥30 trillion	2.5% of base rate

*

bp = 1/10,000

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Item	Content
Account balances used in calculation	The monthly average value for the total amount calculated by adding together the amount (in the case of the Fixed Date Redemption Issue, the Actual Balance) recorded for each Issue in the Transfer Account Book at the close of each business day during the applicable month, and then dividing the sum by the number of business days during such month.
In cases where the calculateed fee is less than ¥100,000	¥100,000 monthly minimum fee (floor amount)
Non-JASDEC-Related Issues^*1	the amount obtained by multiplying the amount (in the case of the Fixed Date Redemption Issue, the Actual Balance) recorded with respect to each issue in the Transfer Account Book by 80%
Issues Substantially Managed by Serial Number^*2	Excluded from the calculation

*1

Bonds where JASDEC has no involvement in the payment of the principal and interest (JASDEC-Related Issues are the bonds for which payment of principal and interest is made to each bondholder using the multi-layered account structure of the book-entry transfer system where the upper-positioned account management institution shall receive such payment on behalf of the applicable bondholder).
*2

Bonds for which management is conducted on the basis of the serial numbers of the former bond certificates even after those bonds have been transferred into the book-entry transfer system.

Examples of fee calculation

Case I (volume discount applied)

Period held by participant A	Account balance	Type of the Issue
Sept 1 ~ Sept 13 (9 business days)	¥6 trillion	JASDEC-Related Issues
Sept 14 ~ Sept 29 (11 business days)	¥8 trillion	JASDEC-Related Issues

Computation of account balances used in calculation

Average account balance in September = (¥6 trillion x 9 business days + ¥8 trillion x 11 business days) / 20 business days (*) = ¥7.1 trillion (fractional amounts are rounded down)
(*) The number of days used here takes the number of business days in September as an example.

Calculation process for fees

1

Calculation of gross fee amount : average account balance × base rate
¥7.1 trillion × 0.065bp × 30 days (*)/ 365 days = 3,793,150.68…=> ¥3,793,150 (fractional amounts are rounded down)
(*) The number of days used here takes the number of calendar days in September as an example.
2

Calculation of discount : calculation of volume discount amounts (total of calculated amounts in each range)
a (Range 2) (¥1 trillion-¥500 billion) × 0.065bp × (100% - 60%) × 30 days / 365 days = 106,849.31…
b (Range 3) (¥5 trillion-¥1 trillion) × 0.065bp × (100% - 40%) × 30 days / 365 days = 1,282,191.78…
c (Range 4) (¥7.1 trillion-¥5 trillion) × 0.065bp × (100% - 20%) × 30 days / 365 days = 897,534.24…
Total (a + b + c) = 2,286,575.34…=> ¥2,286,576 (fractional amounts are rounded up)
3

Calculation of fee amount invoiced
(1) - (2) = ¥3,793,150 - ¥2,286,576 = ¥1,506,574…Participant A's account balance administration service fees in September

Case II (Non- JASDEC-Related Issues)

Period held by participant A	Account balance	Type of the Issue
Sept 1 ~ Sept 29 (20 business days)	¥1 trillion	JASDEC-Related Issues
Sept 14 ~ Sept 29 (11 business days)	¥1 trillion	Non- JASDEC-Related Issues

Computation of account balances used in calculation

Average account balance in September = (¥1 trillion × 20 business days + ¥1 trillion × 80% × 11 business days (*)) / 20 business days = ¥1.44 trillion (fractional amounts are rounded down)
(*) The number of business days used in this example is that for Non- JASDEC-Related Issues.

Calculation process for fees

The same procedure of the calculation is applicable as in Case I above.

For enquiries about the Book-Entry Transfer System for Corporate Bonds, please contact:

General Enquiries about the Book-Entry Transfer System for Corporate Bonds

+81-3-3661-7193