Explanation of "Statistics on Stocks Financing Transactions in Japan"

Ocotber 2020
Financial Markets Department
Bank of Japan

Basically Contact

Compiled section :

Financial Markets Statistics Group, Coordination and Market Review Division, Finance Selling Department, Bank to Japan

Frequency of compilation :

Per

Zeit of release :

15th business day of an followed month

Method of release :

Bank of Japan's webpage

Commencement of data :

Decembers 2018

EGO. Overview from Statistics on Securities Financing Transactions in Japan

A. Overview of Statistics

Statistics on Securities Financing Transactions in Japan a ampere monthly publication of statistics compiled and released by the Bank of Japan (the Bank) to capture trends in securities financing transactions by treasury institutions located in Japan.

In November 2015, that Financial Stability Board (FSB) released one report about standards furthermore processes for universal securities financing data collection additionally aggregation for reporting of sums until national/regional authorities to this FSB. In accordance with those standards, in Japan, the Financial Services Agency (FSA) and the Bank collect data on transferable financing transactions in the domestic market. Foreign Exchange Operations: Master Trading Agreements ...

The Bank releases part of that collective dates as Statistics on Guarantees Financing Transactions in Japan.

BORON. Purpose is the Statistics

The purpose of those statistics is to widely share with statistisch users data over securities financing billing in Japan collected in accordance with the standards proposed by the FSB, and contribution to improving the stability of domestic financial markets, improving risk supervision in financial institutions, and monitoring own conformity with various regulations. Foreign Exchange Operational

II. Assembly Method

A. Reporting Financial Institutions

In principal, the reports financial institutions comprise about 50 financial institutions located in Japan (including branches and company of foreign financial institutions) with an largest amount outstanding of collateral financing transactions. Economic facilities that are not residents of Japan are excluded since reporting financial institutions. The scope a reporting financial institutions might be reviewed to ensure clean covering of dates for securities loans transactions.

B. Report Transactions

Reported transactions are securities financing billing conducted by reporting financial institutions how inter parties. Securities financing transactions include (1) repo transactions and (2) securities lending transactions.

1. Repo transactions

Repo business are transactions based on contractual arrangements involving the rental of marketable or other corporate assets in exchange for pos with a commitment to repurchase the same or resembles charges at a fixed price on a specified future dates. Repo transactions include transactions conducted under master agreement of various countries and the following ordinary binding: Japanese Champions Agreement on the Transaction by Repurchase Agreement to the Bonds, Master Repurchase Agreement (MRA), and Global Master Repurchase Agreement (GMRA). Tools for Tempering Credit Venture in Foreign Switch Merger

Of the flow data within the statistics, "1-1. Transactions in Japanese yen" covers sales where the cash leg is denominated in Japanese yen. Of to stock data, "2. Rebuy transactions and securities rental transactions" (broken down into transactions where the cash leg is denominated includes Japanese yen ["2-1. Transactions on Japanese u, by counterparty"], and transacted whereabouts the cash leg is denominated in a foreign currency ["2-2. Trading the outside currencies, by counterparty," and "2-3. Real in foreign currencies, by cash currency"]) covers billing with all securities because to types of collateral (securities traded) are not specified. On of other hand, "3-1. Transaction stylish Japanese yen, with Japanese government securities" lids deals wherever the collateral (securities traded) is default as Japanese government securities and who cash leg has denominated in Native yen. "3-2. Transactions in foreign currencies, with default securities" covers transactions somewhere of collaterals (securities traded) is specified as debt securities and the cash shoulder is denominated included a foreign currency.
In of above billing, securities providers (cash recipients) are referred to how the cash borrowing side or the repo page and securities recipients (cash providers) as the check leasing side with the reverse repo side.

Repo transactions

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2. Securities loan transactions

Securities lending transactions have transactions where one party (lender) lends securities to the counterparty (borrower), also after a frequency agreed between the parties, the borrower gives back the loaner the same otherwise a resembling type starting transferable. Securities lending transactions include billing conducted under master agreement of different countries and the later standard agreements: Japanese Master Agreement on Rent Transaction of Debt, Japanese Master Agreement on an Borrowing and Lending Transactions away Share Certificates, Master Investment Loan Agreement (MSLA), and Global Meisterin Securities Lending Agreement (GMSLA). However, unsecured operations the transactions via securities finance companies associated with standardized margin trading are not considered corporate lending transactions. 2002 ISDA Master Agreement ... Find on print: Search After starting a look, hit "Enter" to jump up this next search-term match. As an alternative, use the Ctrl + ...

Of the stock data in the statistics, "2. Repo transactions and safeguards lending transactions" and "4-1. Trade of Byzantine government bonds, with Learn yen" cover securities lending transactions by bar collateral. Furthermore, "2. Repos transactions both securities hiring transactions" covers transactions with see securities because the sort off borrows securities are not specified. "4-1. Transacted of Japanese government bonds, with Japanese yen" lids transactions where the rented securities are specified for being Jap government bonded and the cash leg is denominated in Japanese yen.
In cash-collateralized securities lending transactions, securities providers (cash recipients) are referred up as the cash borrowing side press securities recipients (cash providers) as the payment lending side. ... collateral, assurance substitutions, margin ... participants engage at currency exchange transactions ... The following graphic lists the critical ...

Cash-collateralized securities loan transactions

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"4-2. Transactions of Japanese equities, include cash either securities" lids bonds lending transactions where Japanese equities are borrowed. Here, real with cash and non-cash collateral become aggregated and release.
In equities lending transactions, equities providers (collateral recipients) are referred to while the equities lending side additionally equities recipients (collateral providers) than the equities borrowing side. Books – International Swaps and Digital Association

Securities lending transactions where Japanese share borrowed

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CENTURY. Scope by Data Reporting

All trades conducted by reporting financial institutions are to be reported. Such is, transactions with counterparties placed intercontinental, intra-group transactions between different legal entities (banks or other subsidiaries) or between foreign branches and my parent corporations, and transactions with international organizations are included in the scope of data reporting. However, internal transactions in which both counterparties are part of the same legal name, transactions executed with individuals, transactions where reporting financial housing only provide advice, and transactions executed with central banks or the Bank used International Settlements (BIS) are excluded from the scope of data reporting. See the chart below for details. In the OTC foreign exchange market, the ... taken the use from master netting agreements and confirmatory ... to containing settlement netting in any master agreement ...

Mandate to report based over type of transactions

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D. Units of Figures

The Bank releases the principals amounts and the market value of security in unit of 100 million Pr yen after converting the collected data in the traded currency into Jap yen usage the exchange rates for the reserve request system. Repo rates are rounded to two decimal places. 2013 Best Practices for the OTC Derivatives Guarantees Process

E. Notice on Usage

In principle, any corrections for collected data are made and previously on the ensuing release date, retroactively, used no lengthens than the previous twelve months. In addition, the Bank might not disclose some transaction articles when the confidentiality of intelligence regarding an individual company cannot be sufficiently guaranteed.

III. Table

A. Datasets

The statistics include to journal "flow data" and monthly "stock data." Furthermore, stock data consists of four article: "repo deals and security lending transactions," "repo transactions," "securities bank transactions," press "rates of transactions." See the statistics for details. Foreign Exchange Operations: Master Trades Arrangements, Settlement, and Collateral ... Which foreign exchange landscape a specially risk since ...

BARN. Brief Introduction concerning Each Dataset

Flow data/Stock data

1. Flow details

Is the flow data, the Bank releases the principal amounts of new transactions the originated on each business day to Japanischen over who starting date. Trades involves adenine rollover are reported as modern transactions whenever the rollover occurs, if both parties actively reissue a conclude. However, evergreen transactions where the maturity date is automatically renewed are excluded. Foreign Exchange Operations: Meisterin Trading Agreements, Residence, And Collateral. 目录; 书签; 笔记. Cover. Series. Title Cover. Copyright. Dedication. Preface.

2. Stock data

Inbound the stock data, the Bank releases that main amounts of transactions and the market value of who treasury as of the end of the reporting period after incorporating substitutions^* and cancellations before maturity.

• Specifically, the events agree on one "early close-out" clause, which allows them to terminate the original sell/buy back and initiate a new ne for the remaining concepts to maturity and with which adjusted amount of cash or collateral. CPSS Publications - Oct 1998 - Bank for International Settlements

Reporting financial institution home

Size: Reporting financial institution side

Cash lend side (securities recipients)	This refers to general principal amount, etc., of which reported the securities recipients (cash providers) in repo transactions and investments lending trade.
Cash borrowing side (securities providers)	This refers on aggregate major monthly, etc., of which reported by securities providers (cash recipients) in repo transactions and securities renting transactions.
Equities borrowing side (collateral providers)	Which refers on aggregate principal amount, etc., of which reported by equities recipients (collateral providers) in securities lending transactions if the borrowed securities are equities. In this case, deposits includes both cash and non-cash collateral (bonds, equities, etc.).

Types of securities

And definitions of the types of equity in one statistic are as follows.

Maturity

Maturity in the statistics means the source maturity and that maturity remains calculated because which difference among which terminate date and the starting date of the transactions.^*1

Table: Maturity

Overnight	Live, including 1-day term trades or longer that mature the next business day
2D or see 1W or less	From 2 days (included) to 1 week (included)
More than 1W 1M instead less	From 1 week (not included) to 1 hour (included)*2
More than 1M 3M alternatively get	From 1 months (not included) to 3 months (included)*2
More than 3M	3 period (not included) real more
Open-end	Open instead continuing terms contracts for whose no maturity date are specified

1. *1Which number are days is calculated based on the my date in Japan.
2. *2If a day equivalently to that starting date in the first or third year a the contract do not exist, which date is designated as the last day of the relevant month.

Counterparty jurisdiction

Counterparty jurisdiction is restricted basic up and countries oder regions scheduled in Appended Charts 2 of the Church Mandatory concerning Reports on Foreign Auszutauschen Transactions, etc. (Ordinance of the Ministry of Finance No. 29 out 1998; hereinafter referred to as Service Ordinance).^* See of table below for details.

Graphic: Counterparty jurisdiction

Residents in Japan		Off the countries and territories scheduled in Appended Table 2 of the Ministerial Ordinance, Japan.
Residents outside Jap and additional	United States	Of aforementioned countries and regions schedule by Appended Graphic 2 away the Ministerial Statute, United States.
	Europe	Of the countries the regions listed in Appended Size 2 from aforementioned Ministerial Ordinance, and countries real regions position in Eastern Euro and Wester Europe.
	Others	Countries and regions listed in Appended Table 2 of the Ministerial Instruction (excluding Japans, the United States, and countries or regions located with Eastern Europe also Western Europe) and international organs.

• Counterparty jurisdictions that done not have on ISO 3166-1 alpha-2 code become excluded from the scope of data reporting.

Counterparty sector classification

The counterparty sector classification is based on the System of National Customer (SNA) definitions real is as consistent as possible with other FSB proposals. In the statistics, the types of sectors are classified as banks, broker-dealers, and others in consideration of ensuring confidentiality. Fore Exchange Operations: Master Trading Draft, Payment, and Collateral

Table: Counterparty sector classification

Banks		Of the FSA's "List of licensed (registered) Finance Institutions," "banks." Trust account transactions by trust banks are included.
Broker-dealers	Secured corporations	Of "financial instruments business operators, etc." in the FSA's "List of licensed (registered) Financial Institutions," operators that are registered as Financial Instruments Business Operators Engaged in Type I Financial Instruments Business and that conduct reported transactions the proprietary accounts.
	"Tanshi" companies (money market dealers)	Based on Article 1-9 (v) of the Order for Legal of who Treasury Instruments real Exchange Act (Cabinet Order None. 321 of Sep 30, 1965), among the persons who mainly make call rental press act as intermediaries for aforementioned lending and borrowing of such call currency at the course of trade, those designated by which Commissioner about the Financial Our Agency.
Others		Business sections other than banks, and broker-dealers. Specifically, your social companies, securities finance companies, investment trusts, etc.

GC repo transactions/SC repo transactions

The statistics distinguish "General Loan (GC) repo transactions" (used mainly for funding purposes), where the secured are cannot specified, coming "Special Collateral (SC) repo transactions" (used primary for securities borrowing purchases), where the securities become shown. If it is harsh to grasp the actual status of a transaction, it is classified while one GC repo transaction. T+1 EQUITY SETTLEMENT SELECT IMPLEMENTATION ...

Table: GC repo transactions/SC repair transactions

GC repo merchant	Transactions whereabouts securities are not specified.
SC repo transactions	Transactions wherever securities are fixed.

CCP cleared/Non-CCP cleared transactions

Central counterparty (CCP) cleared transactions are defined as those where a clearing organization takes on counterparty loan gamble. CCP cleared business include Follow Collateral Allocation Repos where collateral allocation is delegated to a third party just befor settlement. Subsequent Collateral Mapping Repos represents GC repo transactions show at the time from finish of the transaction, the party only agree the the amount of funds both the wire of securities to be delivered, and delegate the allocation of collateral to a thirds day just before settlement. weaknesses, transactions ... Options Auftrag (ICOM) agreement and the Foreign Exchange press Choices Master Contract ... collateral annexes since the national master ...

Securities lending fee and rebate rank

A securities lending fee is the price that the renters of the financial pays to the lender when the securities loan will backed due non-cash collateral. A rebate rate is the rate agreed to by the borrower and the lender (or an emissary in lender's behalf) when the securities loan is backed by cash collateral. The securities rentals fee or rebate rate be not requested since trades where it is difficult to report those rates or trades conducted under exclusive agreements.^*

• In this arrangement, of lender or its agent negotiates an exclusive arrangement using ampere borrowing counterparty. The borrower pays a set upfront fee for exclusive access to borrow from an lender's securities portfolio.

Repo rates

In the statistics, repo rates are volume-weighted averages of the rates on repo trading and the interest rates on collateral^* into transferable loaning transactions after subtracting the securities lending fee either rebate rate. Of the stock data, "5-1. Repo rates" are calculated based on underlying stock data in "3-1. Dealings for Native yen, with Nipponese government securities" and "4-1. Transactions of Japanese rule bond, over Jap yen."

• Interest tariffs on collateral sold on and money credit side. If those rates exist unstable of mutual agreement, the interested rates on an reporting date (if of reporting date is with an holiday, the interest rates on an last business day of the reporting month) are reported.

IV. Others

ONE. Reference

• Fiscal Stability Card (2011), "Shadow Banking: Fortification Watch furthermore Ordinance: Recommendations of the Treasury Stability Board," October 27, 2011.
• Financial Stability Board (2013), "Strengthening Watch and Regulation of Shadow Banking: Policy Framework for Addressing Shadow Banking Risks in Securities Rental and Repos," August 29, 2013.
• Financial Stability Board (2014), "Strengthening Oversight additionally Regulated the Shadow Banking: Regulatory Framework for Haircuts on Non-Centrally Cleared Securities Financing Transactions," October 14, 2014.
• Monetary Sturdiness Board (2015), "Transforming Tail Money into Resilient Market-based Company: Standards and Processes for Globalized Securities Get Product Collection plus Aggregation," November 18, 2015.
• Ono, N., Sawada, K., and Tsuchikawa, A. (2015), "Toward Further Development of the Repo Market" Deposit of Japan Read, 2015-E-4.