Shortening the Settlement Cycle of JGBs to T+1

Yuriko Watanabe, Shunsuke Yoshida, Masato Ui, Asako Homma, Yusuke Kitahama and Shigeru Shimizu
Additional contact information
Yuriko Watanabe: Bank of Japan
Shunsuke Yoshida: Bank of Japan
Masato Ui: Bank of Japan
Asako Homma: Bank of Japan
Yusuke Kitahama: Bank of Japan
Shigeru Shimizu: Bank of Japan

No 16-E-14, Bank of Japan Review Series from Bank of Japan

Abstract: In Japan, efforts to shorten the settlement cycle of Japanese government bonds (JGBs) have reached the final phase. Market participants and financial market infrastructures are currently working toward shortening the period from trading to settlement (settlement cycle) for outright transactions of JGBs from two business days (T+2) to one business day (T+1), aiming for implementation in the first half of fiscal 2018. At the same time, with regard to repurchase transactions (repos) of JGBs, which are closely related to outright transactions, preparations to introduce a new transaction scheme - GC repos under the Subsequent Collateral Allocation Method - are under way. Such efforts are expected to help reduce settlement risks arising from unsettled positions, and also enhance the efficiency, convenience and competitiveness of Japanese financial markets.

Date: 2016-10-31
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.boj.or.jp/en/research/wps_rev/rev_2016/data/rev16e14.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:boj:bojrev:rev16e14

Access Statistics for this paper

More papers in Bank of Japan Review Series from Bank of Japan Contact information at EDIRC.
Bibliographic data for series maintained by Bank of Japan ().