Clearstream is the first securities settlement system outside Japan to have become a legally recognized intermediary by the Japanese authorities for Corporate Bonds and Municipal Bonds meaning that Clearstream’s customers are fully protected under Japanese law for their bondholdings in Clearstream.
Clearstream has been granted the Foreign Indirect Management Institution status (FIAMI) from the Japan Securities Depository Center, Inc. (JASDEC). Due to this status Clearstream will be able to offer services for municipal bonds as well as value-added services such as withholding tax exemption benefits on corporate bonds. These services will be operational as soon as the relevant Japanese Tax Offices will have approved Clearstream’s Qualified Foreign Intermediary (QFI) status. The Japanese municipal bonds market in 2007 has grown to JPY 200 trillion (USD 1.67 trillion) on a balance basis according to research by Mizuho, the Japanese bank.
In 2006 Clearstream was the first international securities depository (ICSD) to offer settlement of interest bearing Japanese Government Bonds (JGBs) outside Japan. With over USD 7 trillion of securities in issuance, the Japanese government debt market is the largest in the world. A year later, Clearstream opened an office in Tokyo to complement its Asia Pacific network.
Philippe Metoudi, Member of the Executive Board, responsible for Relationship Management for Asia-Pacific, Middle East and Africa, Clearstream, said “We are proud to be the first settlement system outside Japan to receive the FIAMI status. With this status Clearstream has the opportunity to support even further its commitment to Japan and to the Asia Pacific region.”
