1. Disclosure Framework -Study of integrative framework- September 2008 Japan Securities Depository Center, Inc.

2. Infrastructure （ CSD ） Other 2002 1997 1999 1998 2001 2000 2003 2005 2004 2006 Central Bank Securities market regulators History of recommendation / disclosure framework requested to CSDs CPSS/IOSCO Creation of the Task Force EMI (ECB) Standards for SSS CPSS/IOSCO Recommendations for SSS CPSS/IOSCO Recommendations for CCP Thomas Murray Database ECB/CESR Standards for Securities Clearing and Settlement Systems Users （ Custodians ） AGC Questionnaire 2000-2007 Securities market ※ Source ： VP “Inventory of CSD-related Questionnaires and Standards ISSA Recommendation 2000 US SEC Rule 17f-7 G30 Recommendation （ 1989 ） FIBV Clearing & Settlement Best Practice ECSDA Disclosure Framework project ECSDA Disclosure Framework project ACG Disclosure Framework ACG Disclosure Framework G30 Recommendation （ 2003 ） 1 2007 EC/LCG Solutions to Legal Barriers related to Post trading within the EU

3. Recommendation / disclosure framework background & contents CPSS/IOSCOG30/ISSAAGC Regional CSD Associations ECSDAACG Purpose Identify minimum standards that securities settlement systems (SSS) should meet for its stable and effective maintainance Create interoperability in cross border trading by establishing global standards and procedures Gather information needed in the evaluation of depository risk under Investment Company Act Rule 17f-7, adopted in 2000 by the U.S. SEC Avoid that CSDs have to fill in multiple questionnaires Gap analysis on Asia- Pasific regional CSDs Forms Self assessment of the status of achievement of recommendations Answer to the questionnaire Target Securities Settlement infrastructure (CSD*, CCP) CSD* NCSD* （ except DTCC ) ECSDA members （ CSD) ACG Members （ CSD,CCP) Requestor AGC CPSS/IOSCOG30/ISSA Global Custodians （ 8banks ） ECSDAACG US Mutual Fund Features Regarding the overall procedure of securities settlement system ・ Legal framework ・ Risk management ・ Oversight ・ Global network with strength and interoperability ・ Risk Management ・ Governance ・ Legal framework ・ Risk management ・ financial status Integrative disclosure framework covering other questionnaires such as CPSS/IOSCO, G30, ISSA ・ Core services Questions Corporate Info+++++ ++ Legal Framework+++ +++ Member Requirement++++++ + Core Service+++ ++ New Service+++ ++++ Risk Management+++ ++ Overseas Linkage++++++++++ Other++ * CSDs include central banks which hold custody and book-entry transfer functions of government bonds.

4. Components of Recommendations and Disclosure Frameworks Linkage ： Linkage with overseas CSDs… New Services: Securities lending & borrowing, collateral management, tax, CA… Basic Information ： Company name, location, history... Legal Structure ： Legal basis, regulators, capital, governance, audit, disclosure… Core Services: Account management, eligible securities, custody, clearing, settlement, matching, settlement cycle, central bank money, finality, reference data, settlement model (DVP / Gross / Net), dematerialization… Risk Management: Internal risk management, information security, BCP default / error monitoring… Participant ： Participant requirements, types (domestic/foreign), termination… CPSS/IOSCO Rec1,2,3,,,, G30&ISSA Rec1,2,3,,, AGC Q1,2,3,4,5,,,,, ECSDA Q1,2,3,,,, ACG Q1,2,3,,,, 3

5. Contents of Recommendations / Disclosure Framework - Basic Information - AGC CPSS/ IOSCO G30 & ISSA ECSDAACG Basic Information Capital / Revenue○○○○○ Structure○○○ Eligible Securities○○○ Custody Ratio○○ Other CSDs/CCPs○○ 4

6. Contents of Recommendations / Disclosure Framework - Legal Basis, Rules and Procedures - AGC CPSS/ IOSCO G30 & ISSA ECSDAACG Legal Framework Transparency of rules ○○○○ Governance○ ○○○○ Regulation/Oversight ○○○○○ Legal basis for settlement procedure ○○○ Mandatory use of CSD ○○ Rule for participants’ bankruptcy ○○ Proper choice of governing law ○○ Prior incident ○○ 5

7. Contents of Recommendations / Disclosure Framework - Participants - AGC CPSS/ IOSCO G30 & ISSA ECSDAACG Participants Monitoring of participants ○○○○ Membership criteria ○○○ Obligations of participants ○○ Communication with participants ○○ Termination of membership ○○ 6

8. Contents of Recommendations / Disclosure Framework Core Services - AGC CPSS/ IOSCO G30 & ISSA ECSDAACG Core Services DVP Model○○○○○ Finality○○○○○ Non-fungible a/c○○○○ Dematerialization○○○○ Fund settlement○○○ Collateral○○○○ Account structure○○ Matching○○○○ Registration○○ Notification○○ STP○○○ T+1 Settlement○○ 7

9. Contents of Recommendations / Disclosure Framework - New Services - AGC CPSS/ IOSCO G30 & ISSA ECSDAACG New services Securities lending & borrowing ○○○○○ Corporate Action ○○○○ Tax procedure (for non-residents) ○○○○ Information service for IPO ○○ Other asset services ○○ 8

10. Contents of Recommendations / Disclosure Framework - Risk Management - AGC CPSS/ IOSCO G30 & ISSA ECSDAACG Risk Management BCP○○○○ Finality○○○ Default mgmt○○○○ CCP mechanism○○○○ Debt assumption○○ Trade guarantee○○ Insurance○○ Operation loss○○ Intraday credit exposure ○○ Unwind○○ BCP of other organizations ○○ Standardization of registration ○○ 9

11. Contents of Recommendations / Disclosure Framework - Overseas Linkage- AGC CPSS/ IOSCO G30 & ISSA ECSDAACG Overseas Linkage Current status○○○○○ Linkage-risk analysis ○○○○ Usage of global standards ○○○ Obligation of linkage ○○ Synchronization system ○○ 10

12. Contents of Recommendations / Disclosure Framework - Other - AGC CPSS/ IOSCO G30 & ISSA ECSDAACG Other Lawsuit by participants ○ Domestic linkage○ Discrimination against non-CSD users ○ Publication of responses ○○ System management cost ○ Disclosure of cost/risk to participants ○ 11

13. Comparison -ECSDA&ACG- Different Approaches ECSDA Disclosure Framework: Comprehensive, Detail-oriented Questions ACG Questionnaire: Simple, Pragmatic, Yes/No Questions But there are Many Common Terms between ECSDA Disclosure Framework and ACG Questionnaire… Since ECSDA Disclosure Framework includes almost all questions of ACG Questionnaire, ACG Questionnaire can be blended into ECSDA Disclosure Framework

14. ISSA Recommendation 2000 ISSA Recommendation 2000 Implementation of integrative CSD Disclosure Framework Creation of framework + Reconciliation among those concerned Consideration of the ways to filter questions Idea A: Select only common questions from each questionnaire Idea B: Cover all the questions from each questionnaire Consideration of the ways to filter questions Idea A: Select only common questions from each questionnaire Idea B: Cover all the questions from each questionnaire Consensus on creation of integrative framework (CSDs & Requestors) Steps and issues for integrative framework Establishment of integrative framework means… ・ Valuable source as worldwide CSDs’ joint property ・ Response to the need of requestors and reduced burden of disclosure by CSDs CPSS/IOSCO Recommendation CPSS/IOSCO Recommendation AGC Questionnaire ACG Questionnaire ECSDA Disclosure Framework ECSDA Disclosure Framework Other Questionnaires (e.g. Thomas Murray) Other Questionnaires (e.g. Thomas Murray) G30 Recommendation 2003 12

15. Thank You! Kazuhiro Nishimukai Japan Securities Depository Center, Inc.