(Source: Wikipedia, Tokyo Stock Exchange)

The second chapter in the securities settlement revolution is the shortening of the equities settlement cycle planned for 2019. Japan has worked to raise the bar for its securities settlement system, with examples including implementing delivery versus payment (DVP) for securities settlement in 2007, and taking equities paperless in 2009, however, the settlement cycle remains at T+3 (four business days from trade). As such, the next step and chapter in this ongoing story in the settlement revolution is to fully migrate this to T+2.

Shortening the settlement cycle has the direct benefit of reducing settlement risk. In addition, the resulting increase in liquidity can also be expected to indirectly contribute to maintaining and strengthening the market’s competitiveness internationally. Japan Securities Dealers Association (JSDA) and the Working Group on Shortening of the Stock Settlement Cycle have sought to forge a consensus among market participants on how to address the following three points.

  • Reducing settlement risk.
  • Enhancing efficiency, stability, and liquidity of the equities market and the financial market.
  • Maintaining and strengthening international competitiveness (bring operations in line with international standards and orchestrating globalization of the equities market).

The European market migrated to T+2 securities settlement in October 2014, ahead of Japan. In coming to grips with the market reform witnessed in Europe, Asia-Pacific market participants have struggled with process changes and compliance measures accompanying settlement cycle shortening. Addressing challenges from the investment that would be required to risk points proved to be issues that could not be tackled lightly. Meanwhile, in the post-reform European market with the shortened settlement cycle the “settlement revolution” continues to play out.

The simultaneous implementation of integrating the securities settlement infrastructure (central securities depository (CSD) integration in Europe due to T2S (TARGET2-Securities) clearing settlement system) in tandem with market system reform (implementation of common European CSD regulations) ushered in a major turning point in infrastructure and great advances in the post-trade processing ecosystem for the first time in 20 years in the European market.

European market participants significantly expanded investment in the sectors of technology, operations, and systems, however, this has been taking place at the same time, that the entire securities industry is facing intense pressure to cut costs. This growth in IT spending coupled with cost-cutting pressures has spurred an evolution in post-trade operation models that has seen them move from being in-house, closed, and integrated to more innovative, open, and linked.

Changes in Europe Following the T+2 Revolution

What actual changes transpired in the European market following the shift to T+2 conducted in parallel with market infrastructure system integration? Here we will draw on the changes seen in the wake of the European securities to explore responses in Japan’s market as it moves to follow suit.

Post-trade Market Changes  

The simultaneous pursuit of securities settlement infrastructure integration (integration of CSDs across Europe via the T2S platform) and securities settlement system reform (implementation of CSD regulations common across Europe) marked a major turning point as they brought about the first major rethinking of the post-trade ecosystem and infrastructure in the European market in 20 years.

Although market participants have greatly expanded spending on technology, operations, and systems, they still face intense pressure to reduce costs. This growth on IT spending coupled with cost-cutting pressures has spurred an evolution in post-trading operation models that has seen them move from being in-house, closed, and integrated to more innovative, open, and collaborative.

Participants in the post-trade market not only face the need to improve the efficiency of routine operations, but also to reduce costs through shared and mutual use of operations and systems, devise new business models through business alliances and partnerships, and convert post-trade operations from a cost center to a profit center. Pursuit of heightened efficiency in operations as a means of cutting costs is spurring new initiatives—such as through streamlining operations, pooling collateral, and reducing intermediaries—that are in the processes of redefining the structure of the industry.

Structural Change in the Securities Settlement Industry

For individual financial institutions seeking to trim costs by simplifying and standardizing operations, business process outsourcing (BPO) was a good first step. However, the introduction and proliferation of utility services has generated secondary added value and cost reductions on a scale greatly transcending that possible through individual, company-based BPO initiatives.

For instance, new asset management services created via partnerships between small and medium-sized local custodians and large CSDs and efforts to parlay post-trading operation centers into new profit centers are typical examples. The viewpoint of improving the efficiency of securities settlement infrastructure can serve as a chance to reevaluate efficiency, optimization, and added value through comparing cost savings possible through mutual or shared use of operations and systems versus the merits of simple BPO with outsourcing use.

In particular, firms do not need to worry unnecessarily about excessive dependence on other firms, but rather medium- and small-sized market participants will find business alliances and introducing utility services as indispensable to bolstering their bottom lines. This move toward alliances and use of utility services is driving a shift toward the vertical integration of operation flows and partnerships and integration among smaller CSDs.


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(JP) Broadridge & Celent Webinar | The Securities Settlement Revolution in Japan

Related release:

(JP) Shortening the Equities Settlement Cycle: Second Chapter of the Securities Settlement Revolution in Japan

English version will be forthcoming shortly.




「証券決済革命」の第1幕は、2018年5月に予定される国債決済期間の短縮である。日本市場は2012 年4月アウトライト取引 及びSCレポ取引 のT+2、GCレポ取引のT+1(以下総称して「T+2」)を実現した。革命の第1幕はその「T+1」 への完全移行を目指す。

「証券決済革命」の第2幕は、2019年に予定される株式等の決済期間の短縮である。日本市場は2007年の証券決済DVP化、2009年の株券電子化などを通じて、証券決済システムの高度化に取り組んできたが、株式の受渡日は「T+3(約定日から起算して4営業日目の受渡)」である。革命の第2幕は、その「T+2」 への完全移行を目指す。



期間短縮の流れに対し、日本市場はどう対応してきたか?セレントの「決済期間短縮(国債T+1 / 株式等T+2)対応サーベイ2016」の結果に基づくと、以下のとおりである。[1]

  • 市場参加者の大半は株式等決済の影響度を見極めつつ、国債決済のT+1及び新現先市場への対応に注力している。
  • 現状は不可避な制度改正対応に終始しており、着実ではあるが漸進的な歩みであり、決してダイナミックで前倒しの取り組みとは言えない。
  • 日本国債や株式のグローバル化への期待が9割を超え、非居住者取引の進展、ユーティリティサービス(ITOやBPOなど)の新たなITソーシングモデルの進展への期待も大きい。





「証券決済革命」に際して、セレントは「モジュラー・フィナンシャルサービス」への移行を提唱する。そのアーキテクチャは、I) 顧客経験の管理、II) 商品サービスの管理、プロセスの管理、リスクの管理、III) インフラの管理、の3つの階層的なモジュール群から構成される。今回の制度改正対応は、III) 「インフラの管理」が焦点である。




[1] 調査結果の詳細は、下記のブロードリッジ・ホワイトペーパーをご参照ください。

「証券決済革命: 市場参加者の動向とパラダイムシフトの提言」

[2] ブロードリッジ・セレントオンラインセミナーへご参加下さい。






  1. RTGSと照合システムの構築、STPの普及(2001年)
  2. 証券保管振替機構の拡充と株式会社化(2002年)
  3. CCPの設立とDVP決済の進展(2002-3年、2007年)
  4. 株券の電子化(2009年)


  1. 国債、株式等の決済期間短縮化への取り組み
  2. 清算機関(CCP)の機能拡充、利用拡大、連携・統合への取り組み
  3. 証券決済機関(CSD)の機能拡充
  4. 市場参加者におけるSTPの加速
  5. クロスボーダー証券決済の円滑化