Market Link Guide – Japan GBC
Reference
The issue of Global Bearer Certificates (GBCs) as “re-certification” allows non-German securities to be admitted to collective safe custody by CEU and traded on the German stock exchange.
Non-German securities that are admitted to the official market but are not kept in collective safe custody with CEU itself cannot, for legal reasons, be admitted to collective safe custody through a CSD link. CEU can however make those securities admitted to collective safe custody by taking the following steps:
- For each foreign security, CEU opens a segregated account with a supplier (depository) in its home market. The securities positions in the original non-German securities are kept in this account under the original ISIN.
- A global bearer certificate is issued by CEU for the securities positions kept by the supplier and this is deposited in collective safe custody with CEU.
- The positions are traded on the German stock exchange by transferring fractional co-ownership of the global certificate.
Key features
CSD link as defined under CSDRa | Yes |
Type of link | Indirect link to the Japan Securities Depository Center, Inc (JASDEC) for non-German securities deposited at Sumitomo Mitsui Banking Corporation |
a. CSD Regulation (EU) No 909/2014, Article 2(29).
CSD | Depository | |
Name | Japan Securities Depository Center, Inc (JASDEC) | Sumitomo Mitsui Banking Corporation |
FATCA GIIN | HK44AT.99999.SL.392 | C2L4MJ.00000.SP.392 |
LEI | 353800FS52Z4ZWJFA734 | 5U0XI89JRFVHWIBS4F54 |
Country of incorporation | Japan | Japan |
Account type | Omnibus account | Segregated account |
Legal Account name/holder | Omnibus account at JASDEC in the name of MUFG Bank, Ltd. There is no individually segregated account for CEU at JASDEC | Clearstream Europe AG |
Operational arrangements
More information on the operational arrangements and services related to GBCs and the list of eligible securities can be found on the Global Bearer Certificates page of the Clearstream website.
Local legislation
The below section is valid on the date of the legal opinions that were issued and might be subject to change. The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter. The scope of the legal opinions is limited to the local legislation applicable to the relevant CSD (and intermediary, if any). For links using an intermediary located in another jurisdiction, please find a separate Local legislation section for the jurisdiction of the intermediary below. For clients accessing local markets via other Clearstream entities, please also review the Local legislation section in the relevant Market Link Guide for such Clearstream entity.
Local legislation of the CSD/Intermediary | |
Date of legal opinion | 24 June 2026 |
Nature of rights on securities | Substantive law of the jurisdiction will govern the nature of the rights on the securities. Rights on the Securities are of other nature/type (chose in action, right to provide instructions to CSD on behalf of Clients, co-ownership rights, trustee rights, sui generis rights, etc.). Counsel noted differences in conclusions in case of sub-accounts for Clients within the Direct CSD Account. |
Recognition of nominee concept | The laws and regulations of Japan do not have a concept equivalent to the nominee concept. |
No right of retention to the CSD under local law | CSD does not have a lien or similar encumbrances on the Securities under local law. |
No upper-tier attachments | Securities would not be subject to attachment. |
No right of use without prior consent | Use not restricted under local law, but contractual restriction would be enforceable. |
Segregation of assets at the CSD | CSD is under legal/regulatory obligation to segregate the securities held for each participant. |
Loss of assets | No general restrictions on ability to recover lost assets or on indemnification under local law, subject to certain exceptions noted by counsel (such as force majeure, no negligence by the CSD, liability caps, sovereign immunity, etc.) |
Ability to recover client assets in the event of insolvency of CSD | Securities would be recoverable. |
Ability to recover client assets in the event of insolvency of Agent | Securities would be recoverable in the event of insolvency of the Subcustodian. Claim to cash as a general creditor in case of insolvency of the Subcustodian. |
Shortfall pro-rated among holders | Shortfall in the securities would be allocated among the holders of the applicable securities pro rata to their respective ownership percentages. |
Settlement finality in case of insolvency | Transfer orders are irrevocable and finality of settlement is assured. |
