JASDEC

JASDEC, short for Japan Securities Depository Center, Ltd., is the central securities depository (CSD) for Japan. It provides the core post-trade infrastructure for the Japanese market, including safekeeping, book-entry transfer, and settlement of most listed and many unlisted securities. The organization also handles related services such as corporate actions processing, custody, and collateral management, and maintains electronic records of ownership for dematerialized securities.

In settlement, JASDEC operates on a delivery-versus-payment basis, typically utilizing the Bank of Japan’s settlement facilities to settle cash against securities. This arrangement helps reduce settlement risk and supports efficient processing across a wide range of instruments, including equities, government bonds, and corporate bonds issued in Japan.

Governance and relationships: JASDEC is owned by participant institutions from the Japanese securities industry, such as banks, securities firms, and trust banks, and is overseen by relevant regulators, including the Financial Services Agency (FSA) of Japan. It works closely with the Japan Exchange Group (JPX), which operates Japan’s primary markets, and aligns with international post-trade standards to facilitate cross-border settlement and interoperability with other global CSDs.

History and significance: Established to modernize and centralize Japan’s post-trade infrastructure, JASDEC transitioned securities markets from paper-based to electronic book-entry systems and has since expanded its scope to include custody, settlement, and corporate actions services. As a cornerstone of Japan’s market infrastructure, JASDEC aims to reduce settlement risk, increase efficiency, and support market integrity and investor protection.