Tokyo Stock Exchange ("TSE") and Japan Securities Depository Center, Inc. ("Jasdec") have concluded a basic agreement regarding the enhancement of information services pertaining to corporate actions, etc. ("CA information") based on the Tokyo Market Information system ("TMI") operated by TSE.
This initiative marks the first joint venture between TSE and JASDEC outside the settlement business field. TSE began disseminated CA information via TMI to trading participants, custodians, and other parties in November 2001. Following that, TSE added basic information on stocks and other listed issues from August 2008.
JASDEC, in its role as a book-entry transfer institution, administers the book-entry transfer system for stocks, corporate bonds, investment trusts and other securities. Additionally, JASDEC has been pursuing initiatives in the post-trade and transfer fields, including the introduction of ISO20022, a next-generation international message standard.
With this basic agreement, TSE and JASDEC will share information and know-how in a joint initiative to enhance CA information dissemination services based on TMI. In doing so, they will aim to improve user convenience by promoting incorporation of CA information, etc. in Straight Through Processing (STP).
The following initiatives are under consideration, to be realized in the spring of 2014:
Additional dissemination of domestic stock CA information via ISO20022. This would reduce the time and costs required for input or format conversion, and reduce the risk of misinterpretations for CA information currently being distributed to customers and overseas corporations in ISO15022 and other formats via keystroke/conversion.
Dissemination of basic information for issues handled by JASDEC: corporate bonds, investment trusts, bonds with subscription warrants, subscription warrants (shinkabu-yoyakuken), and foreign stocks. This will facilitate one-stop acquisition of basic information for domestic listed stocks and a diverse range of securities.
TMI (CA Information Dissemination Service)
TMI disseminates CA information (dividends, paid-in capital increases, stock splits, mergers/equity swaps, equity transfers, reverse stock splits, takeover bids, general shareholders meeting schedules, etc.) for all domestic companies listed on Japanese stock exchanges. CA information processing is viewed as a risk factor for information omissions and errors. TSE, as the gathering point of such information, aims to ensure its completeness, accuracy, and timeliness by supplying it directly to users via TMI. .
ISO20022 is an international standard related to the registration procedure for financial industry messages.ISO20022 uses XML format and has other functions that make it more convenient than ISO15022, the current primary format for CA information internationally. TSE and JASDEC are researching the implementation of ISO20022 for CA information on TMI with the help of ISITC Japan, a group promoting the shift to STP via paperless and standardized securities transactions, and SWIFT. .