Japan: Settlement cycle for corporate bonds will change to T+2 business days

10.06.2020

Clearstream Banking1 would like to inform customers that effective

13 July 2020

the settlement cycle for onshore domestic Japanese corporate bonds, held with Japan Securities Depository Center, Inc. (JASDEC) in book-entry form and pre-matched through JASDEC’s pre-settlement matching system, will change on a trade date basis from T+3 to T+2 business days.

Impact on customers

There will be no change to the settlement deadlines or processes arising from the settlement cycle change.

The Japan Securities Dealers Association (JSDA) has announced that the scheduled implementation date of the T+2 settlement cycle for corporate bonds (held with JASDEC in book-entry form) is now confirmed, on a trade date basis, effective 13 July 2020. The T+2 settlement cycle will apply to “onshore” transactions pre-matched via the JASDEC pre-settlement matching system.

Currently, there is no specific settlement cycle set for corporate bonds and it should be determined between buyer and seller. The JSDA’s intention is to revise their guideline on corporate bonds transactions and set T+2 settlement as market practice.

Cross-border transactions are excluded for the time being. However, it is expected that more cross-border transactions will be settled on T+2 after the effective date.

Further information

For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.

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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.