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Three-way JASDEC deal boosts SWIFTNet securities take up in Japan
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17 September 2009
Ian Johnston, Chief Executive, Asia Pacific, SWIFT. Michael Reuben, Managing Director, Corporate Banking Division, Citibank Japan Ltd.
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Citi, HSBC and Bank of Tokyo Mitsubishi UFJ (BTMU) will use SWIFTNet to connect to JASDEC’s pre-settlement matching system (PSMS) and book-entry transfer system (BETS) infrastructure.
The three institutions, which signed separate memoranda of understanding (MOU) with SWIFT during the Sibos week, collectively represent a major potential source of flow for the new service.
BTMU Managing Director Takehiko Nemoto said that, as one of the major users of JASDEC, the bank would access PSMS and BETS via a CPU-CPU direct connection.
Takehiko Nemoto, Managing Director, Bank of Tokyo Mitsubishi UFJ (BTMU). Gottfried Leibbrandt, Head of marketing, SWIFT.
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The bank represents Japan on the SWIFT Securities Market Practice Group, which aims at global standardisation in the securities arena and is playing a leading role in modernising the Japanese securities settlement environment. With JASDEC, BTMU is also a member of the Standards Evaluation Group.
“As one of the leading sub-custodians in Japan, HSBC is delighted to lend its support and experience to JASDEC’s planned use of SWIFTNet for communicating with participants in the exchange of settlement and pre-matching instructions and information,” said Colin Brooks, Global Head of Sub-Custody and Clearing at HSBC. “We look forward to working with JASDEC and SWIFT on this important initiative.”
Ian Johnston, Chief Executive, Asia Pacific, SWIFT. Colin Brooks, Global Head of Sub-Custody & Clearing, HSBC Securities Services.
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Nemoto commented that JASDEC’s plans to offer MX messages over SWIFTNet from 2014 would likely draw inspiration from the European experience. “European financial institutions are likely to utilise ISO 20022 over SWIFTNet in 2013 on a large scale when T2S is rolled out,” said Nemoto. “We foresee this movement in the EU will influence Japan.”
BTMU plans to launch a detailed feasibility study with SWIFT and JASDEC to connect PSMS and BETS “from the perspective of benefits and the impact on investment – such as availability and flexibility”.
The MoU signed this week comes on the back of JASDEC initiatives to promote STP, DVP and dematerialisation across the Japanese securities market.
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