Source: Broadridge Financial Solutions
Broadridge Financial Solutions (NYSE:BR), today announced that BNP Paribas Securities (Japan) Limited has signed a new, multi-year agreement to use the Broadridge JASDEC (Japan Securities Depository Center, Inc.) Adapter, for its paperless equities operation.
This will provide BNP Paribas with the capability to support its Japanese equities business for domestic clients as well as the clearing/custody operations they perform on behalf of their affiliates. The new system will help the firm to meet its compliance requirements associated with Japan's mandatory paperless equity regulations, which take effect in January 2009.
"The JASDEC Adapter provides a common platform with our back office system, Broadridge's Gloss, enabling us to achieve a high level of STP and operational efficiency", stated Ken Utsunomiya, Head of Operations Department for BNP Paribas Securities (Japan) Limited. "Furthermore, there are significant cost savings in bringing the operation in-house by deploying the JASDEC Adapter", he said.
Broadridge's JASDEC Adapter is a fully automated connectivity module to JASDEC's Pre-Settlement Matching System, Book Entry Transfer System and Shareholder Notice System. It uses both online, real-time TCP/IP and Zengin TCP/IP file transfer protocols. This includes a user interface with enquiry functions, trade and settlement matching, reporting and a delivery prioritisation monitor.
The timing of BNP Paribas' agreement with Broadridge is also significant, as Japan's new paperless equities regulations will take effect in January 2009. These regulations demand that all listed stock certificates, convertible bonds and subscription rights are deposited in paperless form at JASDEC. Beneficial ownership will be confirmed solely through the Ledger of Book Entry Transfer, as maintained by each participant. Ownership needs to be reported by each Account Management Institute (i.e. participant of JASDEC) at incremental and material times during the year, such as fiscal year closing, stock splits or a merger. The JASDEC Adapter will facilitate these interactions between any back office system and JASDEC in a seamless manner.