JASDEC DVP Clearing Corporation (JDCC) has begun delivery versus payment (DVP) settlement service for non-exchange transaction deliveries (NETD).
According to JASDEC, the volume of DVP settlement today amounted to 82,735 transactions or for 1,087 billion yen in value. The company reported that all its DVP eligible transactions were settled without significant problems.
Introduction of DVP for NETD realizes greater safety and efficiency for settlements of securities and funds among banks, trust banks, and securities firms serving for institutional investors and foreign investors, the company said. As a result, the securities settlement system as a key financial infrastructure in Japan is enhanced to add an important function comparable to the most advanced securities markets, JDCC pointed out.
In the course of DVP for NETD, JDCC ensures the performance of obligations with respect to settlements of securities and funds on the part of the deliverer and the receiver through assuming such obligations, imposing strict risk control measures, and carrying out payments of funds via Bank of Japan Financial Network.
Non-exchange transaction deliveries (NETD) are book-entry deliveries of securities excluding those carried out in connection with clearing of trades on stock exchanges, and they accounted for 58.7 percent of all the book-entry deliveries between participant accounts at Japan Securities Depository Center, Inc., the central securities depository for stock, corporate bonds with subscription warrant (convertible bonds), ETF, REIT, etc. (fiscal 2003, number of delivered securities basis)
There are 62 qualified users of DVP for NETD including banks, trust banks, and securities firms.
Introduction of DVP for NETD realizes greater safety and efficiency for settlements of securities and funds among banks, trust banks, and securities firms serving for institutional investors and foreign investors, the company said. As a result, the securities settlement system as a key financial infrastructure in Japan is enhanced to add an important function comparable to the most advanced securities markets, JDCC pointed out.
In the course of DVP for NETD, JDCC ensures the performance of obligations with respect to settlements of securities and funds on the part of the deliverer and the receiver through assuming such obligations, imposing strict risk control measures, and carrying out payments of funds via Bank of Japan Financial Network.
Non-exchange transaction deliveries (NETD) are book-entry deliveries of securities excluding those carried out in connection with clearing of trades on stock exchanges, and they accounted for 58.7 percent of all the book-entry deliveries between participant accounts at Japan Securities Depository Center, Inc., the central securities depository for stock, corporate bonds with subscription warrant (convertible bonds), ETF, REIT, etc. (fiscal 2003, number of delivered securities basis).
There are 62 qualified users of DVP for NETD including banks, trust banks, and securities firms.