Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 3

The industry worldwide must satisfy the need for efficient, fast settlement by full adherence to the International Securities Numbering process (ISO 6166) and uniform usage of ISO 15022 based standards for all securities messages. The industry should seek to introduce a global client and counterpart identification methodology (BIC - ISO 9362) to further facilitate straight through processing. Applications and programmes should be structured in such a way as to facilitate open inter-action between all parties.

1.	Does the market use ISIN as the primary securities identification code?	Though JASDEC book entry system has already had capability of using ISIN, participants’ need for using ISIN has not been unified yet. Therefore, using ISIN in the system has been postponed. Concerning the Pre-settlement Matching System (hereinafter referred to as "PSMS"), ISIN has been used as the primary securities identification code from the September 2001 start of the system. The system is now live for domestic investors, and expected so for non-resident investors from February 2002.
2.	Are the major participants in the market linked electronically?	In JASDEC book entry system, participants and other related parties in the market are linked electronically. In addition, the PSMS is the closed network for investment managers, broker/dealers, trust banks, custodian banks, insurance companies, etc.
3.	Does the depository communicate using true (i.e. not bilaterally agreed on sub-standards) ISO standards for securities messaging?	JASDEC book entry system does not use ISO standards for securities messaging for communicating with participants, but uses unique message format. The PSMS uses ISO 15022 as data syntax. JASDEC standardises the usage of ISO 15022 in liaison with ISITC Japan.
4.	Does the market operate standard identification codes for counterparties or client accounts and, if so, how do (or could) these fit into a single global identification methodology?	JASDEC book entry system adopts the domestic and standardised codes, which are widely used by the market in the country. For fitting into a global identification methodology, each market participant makes a necessary conversion from the domestic codes. The PSMS uses BIC for counterparties and client accounts identification and proprietary code as supplementation.