Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 1

Securities Systems* have a primary responsibility to their users** and other stakeholders. They must provide effective low cost processing. Services should be priced equitably.

* Securities Systems = depositories, settlement and clearing systems
** Users = customers of the securities system, and all other parties to whom the securities system owes a duty of care

1.	Is the board that governs the depository answerable to its users?	JASDEC is a non-profit foundation established under the Civil Code. The highest decision making body of JASDEC is the board of governors as provided by the by-law of JASDEC. The board of governors of JASDEC consists of representatives from related constituent bodies. The board includes representatives from JASDEC participants (each one from each industry sector such as the securities industry, the banking industry and the trust banking industry), issuers, exchanges and academic societies, as well as standing governors.
2.	Does any single organisation, or sector (e.g. brokers, custodians, Stock Exchange) have a large voting position at the board of the depository?	As mentioned above, each governor is selected from each related body. So, no single organisation or sector has a large voting position at the board of JASDEC.
3.	Is there cross subsidisation of products (e.g. international services subsidised by local ones or transaction costs subsidised by asset servicing charges)?	JASDEC main business is book-entry delivery and custody of only company stocks. The primary source of income is derived from fees of book-entry delivery and fees of custody half-and-half. As JASDEC is a non-profit foundation, JASDEC fees for services are based on cost.
4.	What process is in place at the depository to ensure that it meets the needs of all its stakeholders (e.g. institutions, broker dealers, retail investors, issuers)?	In addition to the board of governors, JASDEC has the board of trustees to discuss policies and businesses of JASDEC. The board of trustees of JASDEC consists of representatives of JASDEC participants (securities companies, banks and trust banks), issuers, institutional investors exchanges and academic societies. Decisions made by the board of trustees are reflected as the recommendations and advises for the board of governors decision making. In addition, New Business Committee consisting of representatives from participants is organised to discuss the new businesses to meet stakeholders’ needs.
5.	What is the communications strategy of the depository to its stakeholders and how is this run?	JASDEC organises a task force under New Business Committee consisting of stakeholders for each a new business. Communication between JASDEC and its stakeholders can be made through the discussions in a task force on JASDEC’s future plan for new businesses. Besides, JASDEC publishes an annual report detailing its actions and plans, as well as its financial status. All major events are published through some brochures and its website.