jsda japan annual report 10

JapanS ecurit iesDealersAssociat ion

JSDAAnnual Report 2010

Contents

Preamble ..................................................................................................................................2

Creating Sound and Active Markets .......................................................................5

Major Self-Regulatory Operations ............................................................................7

Training Courses for Member Firms .....................................................................10

International Activities .................................................................................................12

Membership .......................................................................................................................14

JSDA Data .............................................................................................................................18

Profile ......................................................................................................................................24

JapanS ecurit iesDealersAssociat ion

2 Annual Report 2010

W ith the annual report 2010 now

complete, I would like to outline

conditions in the financial and capital

markets, JSDA’s operating environment, and our

basic approach to the issues facing us.

When the total capitalizations are compared among

major stock markets around the world, Tokyo

comes in second after New York, with Shanghai

ranking as the world’s sixth largest stock market.

However if we look at the overall Chinese stock

market by combining the Shanghai, Hong Kong,

and Shenzhen markets, the China market overtook

Tokyo last year.

Moreover, as has been pointed out in the past,

foreign investors’ trading in Japan’s stock markets

has been on the decline recently. After constantly

accounting for a share of overall brokerage orders

in the 60% range for the last few years, foreign

investors’ share of trading fell into the 50% bracket

last year. In view of these trends, I am extremely

concerned that foreign investors’ interest in the

Japanese market and in Japanese companies is on

the wane. I believe that Japan needs to aggressively

make the investment appeal of its markets to the

overseas investment community. The JSDA has

been conducting such overseas investor relations

(IR) activities over the last few years; first in London,

then in Hong Kong, and more recently in Singapore

in March 2010.

Looking at another trend, individual investors

only accounted for about 29% of transactions in the

previous year. Clearly, it is important to find ways to

increase their participation in the market.

In view of the overall picture, therefore,

our industry faces the urgent task of building

a trustworthy market that can gain greater

participation by both overseas and domestic

investors.

In pursuing this goal, I believe it is important to

implement widespread and aggressive economic

stimulus and market promotion measures

taking care to avoid weakening the international

competitiveness of Japan’s market by obstructing

the market’s liquidity or efficiency.

Strengthening Policy Recommendation Functions to Invigorate the Market

Promoting financial and securities taxation reform

As a result of last year’s change in the governing

party in Japan, the process of determining

tax system revisions was consolidated into the

Government Tax Commission. We welcome the

outcome that, under the new ruling party, the

preferential tax rate of 10% on listed shares and

publicly offered stock investment trusts was

maintained in view of current market conditions

and the interests of the many investors in the

market. In other areas, future introduction of the

tax exemption for individuals for small investment

amounts, the Japanese version of individual savings

accounts (ISAs), has been decided recognizing its

important role in shifting the Japanese financial

system’s focus from savings to investment by

expanding the number of individual investors.

We have high expectations that it will become a

Preamble

Annual Report 2010 3

new form of securities investment infrastructure,

following the special account (Tokutei-koza) system

for simplifying tax reporting by individuals, which

has already firmly taken root in Japan. However,

there are limitations on the investment amount and

duration of the Japanese version of ISAs (annual

contributions of ¥1 million and a three-year term).

From the perspective of increasing the benefits of

this tax policy while reducing its implementation

expenses, we intend to request that the procedures

be simplified and the investment amounts and

duration of the plan be increased.

Also, the recent round of tax revisions expanded

and enhanced the tax exemption system for interest

received on bonds by non-residents from the point

of view of vitalizing the corporate bond market, and

introduced matching contributions under Japan’s

defined contribution pension fund system.

On another front, we are continuing to push

forward with our efforts to expand the scope of

the aggregate taxation for financial products,

such as including profit and loss aggregation for

derivative transactions and completely eliminating

double taxation of dividends. Overall, we are fully

committed to ongoing reform of the financial and

securities taxation system

Promoting measures to vitalize the corporate bond market

During the recent financial crisis, financial institutions

around the world found it temporarily difficult to

fulfill their credit intermediation function, creating

great concern among corporations regarding

fund raising, particularly their short-term financing

needs. At the time, there was a great deal of interest

in using corporate bonds and commercial paper

(CP) to fill the gap. This situation evidenced that the

corporate bond market must work as an important

part of the capital market. Because it provides

investors with medium risk and medium return

investment instruments, we recognize that taking

measures to vitalize the corporate bond market

is an important challenge for the revitalization of

Japan’s economy.

For that reason, in July 2009, the JSDA established

a cross-industry Study Group to Vitalize the

Corporate Bond Market, chaired by Toshihiko Fukui,

former governor of the Bank of Japan. The council

deliberated this issue from various perspectives,

including an analysis of current conditions, the

primary market, the secondary market, and market

infrastructure and practices. In June 2010, the Study

Group issued a final report suggesting a number of

possible measures to vitalize the corporate bond

market.

Undertaking a Fundamental Review of Self-Regulation

Review of the overall self-regulatory framework

Amid the continued advances and sophistication of

investment instruments and transaction methods

in financial and capital markets, self-regulatory

organizations (SROs) are being required more

than ever before to respond quickly to changes

in the environment and demonstrate their proper

functioning in conjunction with government

regulatory bodies’ oversight and monitoring of

securities firms and markets.

To meet that challenge, in September 2009,

the JSDA established the Study Group on Roles

and Functions of Self Regulation, to undertake a

fundamental review of its self-regulatory rules. The

Study Group is doing so based on an investigation

into how to make JSDA’s self-regulatory rules

effective and efficient taking into consideration

such concepts as principle based rules and cost

versus benefit analysis. To begin with, the Study

Group is determining the basic principles of self-

regulatory rules to be applied in the fundamental

review. Following that process, the study group will

consider the revision and consolidation of JSDA’s

overall self-regulatory rules.


At the same time, the JSDA has been adjusting

to many revisions in laws and ordinances since

the enforcement of the Financial Instruments

and Exchange Act (FIEA), and maintaining and

strengthening its SRO functions.

In conjunction with these efforts, the JSDA is

working with other Financial Instruments Firms

Associations regarding collaborating on and

creating self-regulatory rules. Recently the JSDA

is actively cooperating with related institutions in

disseminating information and conducting public

relations campaigns aimed at preventing investors

from becoming victims of investment scams

involving unlisted stocks.

Expanding and enhancing mediation and dispute resolution system

In August 2009, to further increase the trust

and satisfaction of users in the mediation and

dispute resolution system and to implement

industrywide operations, including Type II Financial

Instrument Businesses, the JSDA cooperated with

other Financial Instruments Firm Associations in

establishing the Financial Instruments Mediation

Assistance Center (FINMAC). The center began

operations in February 2010.

At the same time, the FIEA was partially revised

in April 2010, creating a new financial alternative

dispute resolution (ADR) system for financial

products in addition to the current mediation and

dispute resolution framework.

The JSDA plans to proactively support and

collaborate with FINMAC in implementing the new

ADR system.

International ActivitiesIn the international arena, the JSDA endeavors to

strengthen ties with its international counterparts

and national securities market bodies of other

countries in consideration of the globalization

of financial and securities markets. We actively

participate in the activities of such international

bodies as the International Council of Securities

Associations (ICSA) and the Asia Securities Forum

(ASF). Moreover, the JSDA acts to facilitate the

work of the International Organization of Securities

Commissions (IOSCO) chairing its SRO Consultative

Committee (SROCC) . Setting up the International

Advisory Committee within the JSDA consisting of

knowledgeable persons and representatives from

JSDA members actively involved in the international

business, our efforts are also being directed toward

increasing policy recommendations from the

Japanese securities industry to key international

bodies and standard setters including the G20,

the Financial Stability Board, the Basel Committee

and the IOSCO.

The above represents an outline of our recent

activities and our basic approach to the issues

facing us. The JSDA will continue to dedicate its full

efforts to accomplishing its previously mentioned

strategies in endeavoring to vitalize domestic

securities and financial markets and contribute

to the further development and expansion of

the economy. In meeting these challenges, we

look forward to your continued support and

cooperation.

Tetsuo Mae

Chairman

Japan Securities Dealers Association


Enhancing and Vitalizing Financial and Capital Market Functions

The “Study Group regarding Financial and Capital

Markets” pointed out in its June 2009 report that

vitalizing the corporate bond market was a major

issue for the industry. In response, the JSDA set up

the “Study Group to Vitalize the Corporate Bond

Market” as a consultative group to its chairman.

Holding four meetings in fiscal 2009, the study

group looked into the current corporate bond

market and various issues related to vitalizing the

market and to diversifying mid- and long-term

corporate financing tools and fund management

methods of investors.

In June 2010, the Study Group issued a final

report suggesting a number of possible measures

to vitalize the corporate bond market.

Achieving a Financial and Securities Taxation System that Stimulates the Capital Market

In October 2009, based on the deliberations of the

Working Group on the Securities Taxation System,

the JSDA made the following tax revisions requests

to the Financial Services Agency (FSA) and Ministry

of Finance.

(a) Continue the preferential tax measures for

capital gains and dividends on listed stocks and

design a simplified system for tax exemptions

on investments by individuals in listed stocks

(Japanese version of ISA).

(b) As a tax measure to promote the unification of

the financial income tax system, expand the

scope of profit and loss aggregation of financial

products for tax purposes and make adjustments

to correct double taxation of dividends.

(c) Provide tax exemptions for interest received and

gain on redemption of bonds by non-residents

and foreigners as a tax measure to vitalize the

bond market.

Expanding and Upgrading Statistical Data on Financial and Capital Markets

In June 2009, the JSDA established the “Study

Group to Expand and Upgrade Statistical Data on

Financial and Capital Markets” under the Securities

Strategy Board. The study group deliberated on the

Creating Sound and Active Markets

Creat ing Sound and Act ive Markets


systematic assembling of data and on promoting

a one-stop service for statistical data on financial

and capital markets in cooperation with relevant

parties. The JSDA also determined the basic

concept and the short-term tasks regarding data

assembly as well as putting into motion a concrete

improvement plan including such measures as

maintaining time-series data.

Setting up the Industrywide Shared Information Network and BCP

In April 2009, the JSDA launched the Securities

Industry Network (SI-Net) for securities firms as well

as a compliance WAN for the securities industry as

a whole. The JSDA began operations of its Japan-

Insider Registration & Identification Support System

(J-IRISS) service for preventing insider trading the

following May.

During the fiscal year, the JSDA implemented

a joint training session using the industrywide

business continuity plan (BCP) system BCPWEB. The

JSDA also made a reference list of major items to

draw up a BCP for dealing with an epidemic of the

new influenza virus.

International Advisory Committee

In July 2009, the JSDA formed the International

Advisory Committee with a view to efficiently

and properly reflecting the industry’s voice in

consultative documents issued by international

bodies and to provide advice on the JSDA’s

international activities and projects. During the

fiscal year, the committee considered some of

JSDA’s international activities and discussed two

consultative documents issued by the Basel

Committee on Banking Supervision (BCBS). Based

on the results of its discussion of the consultative

documents, the committee sent comments to the

BCBS in April 2010.


Undertaking Overhaul of the Framework of Self-Regulatory Rules

In July 2009, the JSDA formed the Study Group

on Roles and Functions of Self Regulation under

the Self-regulation Board. The study group met

four times during the fiscal year, discussing how

to make JSDA’s self-regulatory rules effective and

efficient taking into consideration such concepts

as principle based rules and cost versus benefit.

Boosting Market Fairness and Functions

The Working Group on Securities CFDs, which was

established in April 2009, announced its interim

report on various issues related to securities

contract for difference (CFD) transactions

in October 2009. Based on that report, the

JSDA created its Regulations Concerning CFD

Transactions, which set up a self-regulatory

framework for such areas as sales solicitation

by Association members and the obligation

to establish a system that enables loss cutting

transactions.

Since the occurrence of the global financial

crisis, there has been a growing awareness of the

necessity of reviewing practices for failed deliveries

in bond transactions. In response, in May 2009, the

JSDA set up the Working Group concerning Review

of Fails Practices for Bond Trading, which issued its

public interim report in October 2009.

In January 2010, the JSDA established the

Council for Preventing Scams Using Unlisted Stocks.

The council drew up and announced specific

measures to prevent investors from becoming

victims of investment scams. In March 2010, the

JSDA produced and distributed a poster to warn

investors of the dangers and in the following April

set up a call center dedicated to receiving investor

reports of problems involving unlisted stocks.

The FSA revised its Comprehensive Guidelines

for Supervision of Financial Instruments Business

Operators, etc. in March 2010. In the revisions, as

a requirement for gaining approval to operate a

proprietary trading system (PTS), the FSA obliged

PTS operators to implement systems and policies

to eliminate possible unfair transactions, such as

any short selling that would normally be prohibited

if executed on exchange.

In reaction to these revisions by the FSA, in May

2010, the JSDA formed the Working Group on the

Establishment of Systems for Off-Exchange Trading

of Stocks, etc. to discuss the issues. As a result of those

deliberations, the JSDA revised its self-regulatory

rules to require individual securities companies

to establish a management system, including the

formation of in-house rules to maintain fairness

in short selling transactions. In addition, the JSDA

created a Guideline on Price Standards for short

selling through PTSs.

Enhancing the Mediation and Dispute Resolution System

The JSDA formed the Financial Instruments

Mediation Assistance Center (FINMAC), a specified

non-profit organization (NPO), with the cooperation

of other Financial Instruments Firms Associations.

The NPO was established from the perspective

of contributing to enhanced investor protection

by setting up system for providing mediation and

dispute resolution services in a more industrywide

Major Self-Regulatory Operations

Major Sel f -Regulator y Operat ions


and comprehensive manner. The JSDA transferred

its mediation and dispute resolution operations

to FINMAC in February 2010. Moreover, to further

increase the trust and satisfaction of users of

FINMAC’s services, the JSDA actively supported and

collaborated closely with FINMAC appropriately

informing its members on FINMAC’s roles and

functions in the financial alternative dispute

resolution (ADR) system.

Enhancing JSDA’s Inspection Capacity

JSDA’s inspection team identified appropriate

inspection methods and items in light of each

inspected member’s business detail, risk exposure,

and other factors. Based on this preparation, the

JSDA carried out effective and efficient inspections

of a total of 152 firms, including 91 regular

members and 61 special members. Taking into

consideration the results of an October 2008 survey

of member firms regarding JSDA inspections,

the JSDA responded to their requests to simplify

the required pre-inspection documentation and

clarify its entry details (April 2009), to increase the

efficiency of pre-inspection process carried out

by member firms by posting the format for the

required pre-inspection documentation on the

JSDA’s wide-area network (WAN) (July 2009),

and to improve administrative efficiency by

enabling the submission of the required pre-

inspection documentation electronically through

the compliance WAN system. In addition, the JSDA

carried out thorough dissemination of information

regarding its inspections, reporting to member

firms on the specific details and cautionary points

arising from the inspection results.

Disciplinary Actions

(1) Disciplinary Actions against Member Firms

In fiscal 2009, one regular member had its

membership suspended and penalty money

imposed (with admonition), six of them had

penalty money imposed (with admonition),

five regular members were reprimanded

(with admonition), and six others received

admonitions.

(2) Disciplinary Actions against Sales Representatives

In fiscal 2009, 33 sales representatives of

regular members had their sales representative

registration revoked, 42 sales representatives

of regular members were deemed the

perpetrator of an inappropriate act, and 51

sales representatives were suspended from

their duties as sales representatives, while 48

sales representatives had their qualification

suspended.

A total of 11 sales representatives of special

members had their sales representative

registration revoked, 11 of them were deemed

the perpetrator of an inappropriate act, 8 of

them were suspended from their duties as sales

representatives and 7 sales representatives had

their qualification suspended.


Major Sel f -Regulator y Operat ions

Qualification ExaminationsThe JSDA holds the qualification examinations

for Class-1 Sales Representative, Class-2 Sales

Representative, and Internal Administrator for

executive officers and employees of regular

members involved with securities business

operations. Only the Class-2 Sales Representative

examination has been open to the public since

September 2004, while the others can be taken

only by the executive officers and employees of

association member firms.

The JSDA also holds the qualification

examinations for Special Member’s Class-1 Sales

Representative, Special Member’s Class-2 Sales

Representative, Special Member’s Class-4 Sales

Representative, and Special Member’s Internal

Administrator. The number of successful applicants

for each examination in fiscal 2009 is shown in the

following table.

Examination Successful Applicants

Class-1 Sales Representative 26,969

Class-2 Sales Representative 39,073

Internal Administrator 21,724

Special Member‘s Class-1 Sales Representative 5,292

Special Member‘s Class-2 Sales Representative 33,068

Special Member‘s Class-4 Sales Representative 507

Special Member‘s Internal Administrator 5,504


Training SystemBased on a training program drawn up annually,

the JSDA provides training courses for executive

officers and employees of member firms. The JSDA

also flexibly conducts training courses other than

those included in the program in response to

amendments of laws and institutional changes.

In fiscal 2009, the JSDA held training courses

with main objectives to further improve the ability

and credentials of executive officers and employees

of member firms, and thereby contribute to building

greater confidence in the securities industry among

investors. The chief point of the training courses

was to help member firms reinforce compliance

and keep up with advances in trading methods

and changes in market environment. A total of

6,693 participants attended these courses.

To contribute to strengthening the compliance

system and enhancing internal training in member

firms, the JSDA compiled and distributed a

collection of rulebooks on laws and regulations to

be used as reference material in internal training

courses. In addition, the JSDA provided summaries

and training materials on compliance-related

issues from among its training sessions for the fiscal

year. Moreover, it dispatched or introduced JSDA’s

executive officers and employees to act as lecturers

at a total of 36 in-house training sessions of member

companies during the fiscal year.

Training Courses in Fiscal 2009

1. Seminar for company representatives

2. Training for executives

3. Training for internal administration

supervisors

4. Training for internal administration assistant

supervisors

5. Training for internal administrators

6. Training for sales managers

7. Training for qualification renewal of sales

representatives

8. Compliance practice course

9. Securities business seminar

10. Compliance seminar for sales staff

11. Risk management seminar

12. Corporate ethics seminar

Training Courses for Member Firms


Training Courses for Member Firms

Investor Education(1) Activities to Disseminate Securities

KnowledgeThe JSDA formed the Project for Dissemination

and Enlightenment of Securities Knowledge

with other organizations such as the Tokyo Stock

Exchange Group, Investment Trust Association

and other securities-related bodies. This initiative

promotes investor education on a continuing

basis over the long term carrying out a variety of

investor education activities on a cooperative basis.

The following are the main activities.

• Providing educational materials for middle and

high school students

• Offering a Stock Market Game for middle and

high school students

• Holding the Financial and Economic

Education Forum

• Holding events around Securities Investment

Day (October 4th)

• Holding Securities Investment Seminars as a

spring event

(2) Other Activities• Public relations activities to prevent securities

investment trouble

Since many troubles involving unlisted stocks

were reported, the Self-regulation Dept. and

related bodies collaborated in the production

and widespread distribution to related bodies of

leaflets and posters warning investors of scams

using unlisted stocks. The JSDA also produced

and widely distributed to related bodies a leaflet

mainly for people without any experience in

investing in stocks or for beginners targeting

the prevention of troubles. The leaflet contained

a simple summary of the basic points that need

to be understood when investing in securities.

• Investor Relations (IR) seminars

During fiscal 2009, the JSDA held a total of 49 IR

seminars in Tokyo, Osaka, Nagoya and Kyoto in

response to individual investors’ strong need for

business information disclosure and to support

the IR activities of listed companies. Altogether,

18,777 people participated in these seminars.

• Publications

To spread knowledge and understanding about

securities, the JSDA produces and distributes

booklets and materials about stocks, bonds,

investment trusts and other investment

instruments for general investors.

• Securities information offices

The JSDA operates securities information

offices in Tokyo, Osaka and Nagoya to provide

the public with not only securities investment-

related information, but also information on the

economy and finance as a whole.

• Support for university student association

The JSDA provides financial and other support

and information to the nationwide student

association, “Japan National Federation of

Securities Research Students”. This association’s

members comprise university study groups that

carry out research on securities.

• Hosting international seminar on investor

education

In October 2009, the JSDA jointly hosted an

international seminar on investor education with

the International Forum for Investor Education

(IFIE). The purpose of the joint seminar was to

further promote the financial and investment

education in Japan and Asian countries by

inviting experts as panelists from regions that

are forerunners in the field of financial and

investment education. The joint seminar was

held in Tokyo and Osaka and attended by 344

participants, including 20 foreign participants.


International Organization of Securities Commissions (IOSCO)/ SRO Consultative Committee (SROCC)

The International Organization of Securities

Commissions (IOSCO) is an international

organization that brings together the regulators

of the world’s securities and futures markets to

establish standards and effective surveillance of

international securities transactions. The IOSCO SRO

Consultative Committee (SROCC) was established

in 1989 as a forum of IOSCO’s affiliate members

which have self-regulatory roles and functions. The

SROCC has 69 members representing developed

and emerging securities and derivatives markets

from around the world and has become an

important part of the global regulatory community

responsible for securities regulation and fair market

practices. Since June 2006, Mr. Tatsuo Watanabe and

subsequently Mr. Yoshio Okubo of the JSDA have

been acting as the chairperson on the committee

and the JSDA has served as its facilitator, working

with the IOSCO Secretariat.

The turmoil in the global financial markets

has highlighted the roles and importance of self

regulatory organizations in many jurisdictions.

In coordination with government regulators and

market stakeholders, many SROCC members are

actively engaged in the review of their mandates

and operations in response to the overall

regulatory reform. During this period, the SROCC

has continued to provide a pivotal framework for

self-regulatory organizations to share information

International Activities


Internat ional Act iv i t ies

about their regulatory activities and experiences

with a view to strengthening the underpinnings

of the markets around the globe.

International Council of Securities Associations (ICSA)

The International Council of Securities Associations

(ICSA) was established in 1988 based on a proposal

by the JSDA. The objective of the ICSA is to contribute

to sound development of the international securities

market by promoting transaction practices and

mutual understanding of the international securities

market. The ICSA membership comprises self-

regulatory organizations and trade associations

representing major securities markets in the world.

As of May 2010, 16 organizations are members

of ICSA.

ICSA holds an annual general meeting (AGM).

At the AGM in Washington, D.C. in May 2009,

in the lectures and the panel discussions the

guest speakers and member associations mainly

discussed the global regulatory reform being

undertaken as a result of the G20 summit. In May

2010, ICSA members gathered again at the AGM

in Istanbul and discussed the sovereign debt crisis

in Greece, the U.S. Financial Regulatory Reform Bill,

the alleged fraud by a leading American securities

firm and high frequency trading and so forth.

Asia Securities Forum (ASF)The Asia Securities Forum (ASF) was established

in 1995, based on an initiative by the JSDA. ASF’s

objectives are to exchange views and information

among the securities industries in the Asia-Pacific

region and to contribute to the development

of securities markets and economic growth in

the region.

Last year’s AGM, which ASF members host

on a rotating basis, was held in Sydney in

October 2009, hosted by the Australian Financial

Markets Association (AFMA). More than 40

people participated from the Asia-Pacific and

neighboring regions.

On the agenda at the 2009 AGM were country

reports from the participants, lectures by guest

speakers, and panel discussions on two topics:

“The Changing Global Regulatory Landscape” and

“Infrastructure Financing and Opportunities for

Asia’s Capital Markets”.

(ASF Training Seminar)The JSDA also organizes a training program called

the “Asia Securities Forum Seminar” targeting the

staff of self-regulatory organizations, securities-

related associations and regulatory authorities in

the Asia-Pacific countries to help these countries

develop their securities markets and build up

regulatory frameworks. The fifth ASF seminar

was held in December 2009 and attended by 16

participants from 15 jurisdictions. Participants

mainly studied the regulatory frameworks and

market infrastructure using the Japanese securities

market as an example.


Association Members are categorized into three groups:

(1) Regular Members (305): Securities firms

While 10 new members enrolled in fiscal 2009,

26 members withdrew as a result of mergers or

for other reasons. The breakdown includes 280

domestic securities companies and 25 foreign

securities companies.

Foreign regular members accounted for 8.2%

of regular membership. The United States has the

greatest number of firms with 8, followed by the

United Kingdom with 5, France with 4, Canada with

2 and Australia, Belgium, Brazil, Germany, Switzerland

and the Republic of Korea with 1 each.

The total number of employees of JSDA regular

members was about 93,000 at the end of December

2009, decreasing compared with the previous year.

The number had declined from a peak of 167,000 at

the end of June 1991. The number rose from 2004

to 2008, but reversed again in 2009.

The number of offices of JSDA regular members

at the end of March 2010 was 2,242. This figure

decreased for the first time in 6 years.

Membership

0

5

10

15

20

25

30

35

40

45

50

250

260

270

280

290

300

310

320

330

30

8

289

14

22

13

25

21

10

26

33

308

317

321

305

Mar.2006

Mar.2007

Mar.2008

Mar.2009

Mar.2010

Regular Members

Enrollment Withdrawal Number of Regular Members

2,100

2,150

2,250

2,200

2,300

2,350

2,127

2,214

2,296

2,315

2,242

Mar.2006

Mar.2007

Mar.2008

Mar.2009

Mar.2010

Offices of Regular Members


Membership

82,000

84,000

86,000

88,000

90,000

92,000

94,000

96,000

98,000

100,000

102,000

87,913

92,661

99,139 99,200

93,308

Dec.2005

Dec.2006

Dec.2007

Dec.2008

Dec.2009

Employees of Regular Members

60,000

65,000

70,000

75,000

80,000

85,000

71,965

76,054

81,260 81,198

77,265

Sales Representatives of Regular Members

Dec.2005

Dec.2006

Dec.2007

Dec.2008

Dec.2009


(2) OTC Derivative Transaction Members (0): Firms only conducting specified OTC derivative transactions

(At this point in time, there are no members in this

category.)

(3) Special Members (223): Banks, insurance companies, etc. conducting securities business

During fiscal 2009, 4 financial institutions joined

the JSDA as special members, while 1 institution

lost its membership, and 3 merged with their

memberships transferring to others.

A breakdown shows that 194 banks account

for 86.7% of this total, while insurance companies,

money market dealers, credit cooperatives and

securities finance companies constitute 9.0%, 1.3%,

1.3% and 1.3% respectively.


Membership

44

6

9

219

217

220

223 223

3

1

11

14

3

7

Mar.2006

Mar.2007

Mar.2008

Mar.2009

Mar.2010

Special Members

Enrollment Withdrawal Number of Special Members

0

2

4

6

8

10

12

14

16

214

215

216

217

218

219

220

221

222

223

224

Special Member Composition

Banks137Shinkin banks

40

Trust banks 14

Life insurers 12

Non-life insurers 8

Money market dealers 3

Credit cooperatives 3 Government-related financials 3Securities finance companies 3

Sales Representatives of Special Members

Dec.2005

Dec.2006

Dec.2007

Dec.2008

Dec.2009

300,000

320,000

360,000

340,000

380,000

345,393

357,542

349,261

354,559

360,071

400,000


JSDA Data

Assets

Millions of yen

Thousands of U.S.dollars

1 Floating assets:

Cash & deposits ¥371 $3,988

Advances ¥0 $4

Accounts receivable ¥326 $3,503

Prepayments ¥41 $438

Stored goods ¥13 $137

Subtotal ¥751 $8,070

2 Fixed assets:

(1) Special assets:

Accrued retirement benefits assets ¥3,611 $38,810

Accumulated assets related to securities laws ¥30 $322

(2) Other fixed assets ¥3,048 $32,760

Subtotal ¥6,689 $71,893

TOTAL ASSETS ¥7,440 $79,963

Liabilities

Millions of yen


1 Floating debts:

Accounts payable ¥391 $4,208

Deposits received ¥47 $501

Reserve for bonuses ¥248 $2,662

Lease Liabilities ¥27 $290


2 Fixed debts:

Accrued retirement benefits for employees ¥3,309 $35,563

Accrued retirement benefits for executive officers ¥310 $3,327

Lease liabilities ¥71 $767

Subtotal ¥3,690 $39,657

TOTAL DEBTS ¥4,402 $47,317

Net Assets1 Designated net assets:

Private subsidy ¥30 $322

Subtotal ¥30 $322

2 General net assets ¥3,007 $32,323

Subtotal ¥3,007 $32,323

TOTAL NET ASSETS ¥3,037 $32,646

Balance Sheet (as of the end of March 2010)

* Rate of US$1=¥93.04 used for conversion


JSDA Data

Revenues

Millions of yen


1 Revenues from business activities

Designated Asset Investment Profit ¥26 $278

Membership fees

- Fixed membership fees ¥1,703 $18,301

- Floating rate membership fees ¥4,064 $43,676

Business revenues

- Sales Representative registration fees ¥10 $112

- Training and education fees ¥33 $356

- Qualification examination fees ¥994 $10,687

- Other business revenues ¥45 $487

Subsidies ¥171 $1,838

Other revenues ¥21 $229

Transferred revenues from other accounts ¥887 $9,531

- Transferred revenue from Special Members General Account (¥668) ($7,185)

- Transferred revenues from Institute for Securities Education & Public Relations Special Account

(¥38) ($405)

- Transferred revenue from Members General Fund Special Account (¥84) ($898)

- Transferred revenue from Members Training Fund Special Account (¥32) ($349)

- Transferred revenue from Securities Market Activating Fund Special Account

(¥65) ($694)

Subtotal ¥7,955 $85,496

2 Revenues from investment activities

Revenues from investment activities ¥464 $4,988


3 Revenues from financing activities

Revenues from financing activities – –

Subtotal – –

TOTAL REVENUES ¥8,419 $90,484

Expenses

Millions of yen


1 Expenses to business activities

Operating expenses ¥5,230 $56,213

Administrative expenses ¥1,230 $13,220

Transferred expenses to other accounts ¥506 $5,441

- Transferred Expenses to Institute for Securities Education & Public Relations Special Account

(¥491) ($5,282)

- Transferred Expenses to Reform Promoting Center for Securities Clearing & Settlement System Special Account

(¥14) ($151)

- Transferred Expenses to System Utilization Special Account (¥1) ($7)

- Transferred Expenses to Securities Market Infrastructure Special Account

– –

Subtotal ¥6,966 $74,874

2 Expenses to investment activities

Expenses to investment activities ¥1,424 $15,309

Subtotal ¥1,424 $15,309

3 Expenses to financing activities

Expenses to financing activities ¥28 $301

Subtotal ¥28 $301

4 Other expenses

Other expenses – –

Subtotal – –

TOTAL EXPENSES ¥8,419 $90,484

Surplus / Deficit amount – –

Offset with surplus from the previous fiscal year ¥300 $3,224

Amount carried forward ¥300 $3,224

Revenues and Expenses Statement (Fiscal Apr. 2009 to Mar. 2010)

* Rate of US$1=¥93.04 used for conversion


Dispute Resolutions in Fiscal 2009

Requests for Mediation 170

Successful Settlement 126

Failure in Reaching Settlement 118

(Note) The amounts do not match due to cases carried over from fiscal 2008 or issues not concluded within fiscal 2009.

Consultations and Complaints in Fiscal 2009

Consultation Inquiry or Opinion regarding Securities Transactions 5,748

Complaints Complaints about Solicitation 342

Complaints about Transactions 238

Complaints about Processing 160

Other Complaints 116

Disciplinary Actions in Fiscal 2009

Against Regular Members

Suspension of Regular Membership, Imposition of Penalty Money and Admonition 1

Imposition of Penalty Money and Admonition 6

Reprimand and Admonition 5

Admonition 6

Against Sales Representatives of Regular Members

Revocation of Sales Representative Registration 33

Treatment as a Perpetrator of Inappropriate Acts 42

Suspension of Sales Representative Duty 51

Suspension of Sales Representative Qualification 48

Against Sales Managers of Regular Members

Suspension of Sales Manager Qualification 4

Against Sales Representatives of Special Members

Revocation of Sales Representative Registration 11

Treatment as a Perpetrator of Inappropriate Acts 11

Suspension of Sales Representative Duty 8

Suspension of Sales Representative Qualification 7

Against Sales Managers of Special Members

Suspension of Sales Manager Qualification 1


JSDA Data

Internet Transaction Survey

Number of Securities Companies Providing Internet Transactions(Unit: companies)

Total Member

Firms

Handling Internet

Transactions

Not Handling Internet Transactions

Making Preparations

Studying Plans

Having No Plans

Sep. 30, ‘07 314 57 18.2% 257 81.8% 6 1.9% 5 1.6% 246 78.3%

Mar. 31, ‘08 316 60 19.0% 256 81.0% 5 1.6% 3 0.9% 248 78.5%

Sep. 30, ‘08 320 58 18.1% 262 81.9% 0 0.0% 7 2.2% 255 79.7%

Mar. 31, ‘09 321 57 17.8% 264 82.2% 2 0.6% 5 1.6% 257 80.1%

Sep. 30, ‘09 308 55 17.9% 253 82.1% 4 1.3% 6 1.9% 243 78.9%

Mar. 31, ‘10 305 53 17.4% 252 82.6% 4 1.3% 5 1.6% 243 79.7%

Number of Internet Transaction Accounts (Unit: accounts)

Sep. 30, ‘07 Mar. 31, ‘08 Sep. 30, ‘08 Mar. 31, ‘09 Sep. 30, ‘09 Mar. 31, ‘10

Number of Accounts 12,721,771 13,527,059 14,136,269 15,013,134 15,419,010 15,743,521

Increase from Previous Term-end 832,076 805,288 609,210 876,865 405,876 324,511

Transaction Value (Unit: billions of yen)

Stock Transactions

Internet TransactionsTransaction

Value (c)

Percentage

Cash Transactions

(a)

Margin Transactions

(b){(a)+(b)}/(c)

Apr. ‘07 to Sep. ‘07 50,828.3 71,392.7 551,468.6 22.2%

Oct. ‘07 to Mar. ‘08 42,017.1 66,679.4 508,231.1 21.4%

Apr. ‘08 to Sep. ‘08 34,364.2 59,100.5 431,072.2 21.7%

Oct. ‘08 to Mar. ‘09 26,728.3 46,398.5 296,418.9 24.7%

Apr. ‘09 to Sep. ‘09 34,695.7 53,357.7 297,598.6 29.6%

Oct. ‘09 to Mar. ‘10 24,828.6 42,477.8 266,692.2 25.2%

Notes: 1. “Transaction Value” is total transaction value of stock brokerage transactions of all member firms during the period.

2. The statistics include the transaction value of ETFs and REITs in the transaction value of stock transactions.


Organization Chart

ChairmanVice-Chairman

Senior Managing DirectorRegular Member GovernorsSpecial Member Governor

Public Governors

Member AuditorsStanding Auditor

Financial Sub-Committee

Personnel Div.Accounting Div. General Administration Div.Internal Auditing Div.

Tokyo, Osaka, Nagoya, Hokkaido, Tohoku, Hokuriku, Chugoku, Shikoku, Kyushu

Administration HQ.

Research Div.Planning Div.

Legal Div.International Affairs Div.Information System & Technology Div.

Policy Making HQ.

Member Relations Div.Education & Training Div.

Member Relations HQ.

Securities Market Planning Div.Securities Market Statistic Office

Securities Market Operating Div

Securities Education Div.Securities Public Relations Div.

Securities Information Office

As of July 1, 2010

District Offices

Self-regulatory Planning CommitteeEquity CommitteeBonds CommitteeFinancial Instruments CommitteeDisciplinary CommitteeSales Representative Disciplinary Committee

International Advisory Committee

Securities Industry Council Retail Business Council Wholesale Business Council Internet Brokers Council Securitization & Alternative Business, etc. CouncilDistrict Council

Disciplinary Examination Div.

Sales Representative Examination & Registration Div.

Personal Information Consultation OfficePublic Relations OfficeSecurities Taxation Office

Personal Information Monitoring Office

Office for Establishing Type-2 Financial Instruments Firms Association

Security Policy CenterBCP Office

Inspection Div.1Inspection Div.2 (Monitoring)

Self-regulatory Planning Div.Sales Representative Examination Monitoring Office

Self regulation Div.1 (Equity)Self regulation Div.2 (Bonds)Self regulation Div.3 (Securitized Products & Derivatives)

Securities Mediation and Consultation Center

Securities Market Reinforcement HQ.

Institute for Securities Education& Public Relations

Reform Promotion Center for Securities Clearing & Settlement System

Discipline HQ.

Inspection HQ.

Self-regulation HQ.

Japan Securities Dealers Association

General Assembly

General Affairs Committee

Head Office

Board of Governors

Board of Auditors

Self-regulation Board

General Affairs & Administration Dept.

Self-regulation Dept. Securities Strategy Dept.

Problematic Conduct Confirmation Committee　

Sales Representative Examination Committee

Finance & Securities EducationPublic Relations Committee

Securities Strategy Board


JSDA Data

Organizational Structure of Japan Securities Dealers Association

1. Central BodiesThe JSDA has the following central bodies for decision-making and other actions.

General Assembly: supreme body for decision-making

Board of Governors: body to make an arbitrary decision on items related to JSDA’s overall

management and to assume a responsibility for supervision

Self-regulation Board:: body entrusted by the Board of Governors with decision-making for self-

regulatory business

Securities Strategy Board: body entrusted by the Board of Governors with decision-making for

business strategy related to vitalizing securities market

General Affairs Committee: body under the Board of Governors which deliberates overall matters about

operating the JSDA

2. District OfficesThe JSDA has nine district offices throughout the nation and each district office has a District Council.

3. Affiliated Bodies The JSDA has the Sales Representative Examination Committee, Problematic Conduct Confirmation

Committee as well as Financial & Securities Education Public Relation Committee as affiliates.

Officers (As of July 1, 2010)

ChairmanTetsuo Mae

Public GovernorsHideki Kanda

Professor of Law, University of Tokyo

Masaharu Hino

Lawyer

Toshihiko Fukui

Former Governor of the Bank of Japan

Vice Chairman and Member GovernorsNobuyuki Koga

Nomura Securities Co., Ltd.

Shigeharu Suzuki

Daiwa Securities Co. Ltd.

Member GovernorShigeru Yamaguchi

Yamawa Securities Co., Ltd.

Special Member GovernorMasayuki Oku

Sumitomo Mitsui Banking Corporation

Vice ChairmanKiichiro Masui

Senior Managing DirectorYoshio Okubo

Senior Executive OfficerYoji Kanie

Executive OfficersHidemi Ijichi

Koichi Hirata

Tadaharu Matsukawa

Masahiko Koyanagi

Member AuditorsToru Okada

HiroginUtsumiya Securities Co., Ltd.

Hiroyuki Kikuchi

Kyokuto Securities Co., Ltd.

Standing AuditorKazunori Yoshioka


Profile

Japan Securities Dealers Association (JSDA) is a

hybrid association functioning as a self-regulatory

organization (SRO) and as a trade association in

the Japanese securities market. Its legal status is a

Financial Instruments Firms Association authorized

by the Prime Minister pursuant to Article 67-2,

Paragraph 2 of the Financial Instruments and

Exchange Act (FIEA). Today the JSDA comprises

more than 500 members consisting of securities

firms and other financial institutions operating

securities businesses in Japan.

As a full-fledged SRO, the JSDA extensively

regulates market intermediaries. Its self-regulatory

functions cover rule-making, enforcement,

inspection, disciplinary actions, accreditation of

sales representatives, and dispute mediation.

As a trade association, the JSDA acts as the

industry’s voice in exchanges with the government

and other related parties, conducts and promotes

investor education to expand the base of

knowledgeable investors, and implements various

research programs and studies to generate policy

recommendations for further vitalizing the market.


Prof i le

History

1940 to 1941 According to the policy of one association for one prefecture, securities dealers associations

were established in many local districts.

May 1949 The Japan Securities Dealers Joint Association was established as a federation of securities

dealers associations.

May 1968 33 local securities dealers associations were consolidated into 10 associations.

July 1973 The Japan Securities Dealers Joint Association and 10 local securities dealers associations

were dissolved and Japan Securities Dealers Association was newly established, consisting

of all national securities companies as direct constituent members, with its headquarters

in Tokyo and with 10 district offices.

July 1992 The JSDA was reorganized from a corporate juridical person under the Civil Code to an

authorized corporation under the Securities and Exchange Law.

April 1994 Financial institutions authorized to undertake securities business joined the JSDA as

special members.

April 1995 South Kyushu District Office was consolidated into the Kyushu District Office.

July 1998 The JSDA integrated the Bond Underwriters Association of Japan.

February 2001 The JSDA entrusted the operation of the over-the-counter securities market to a market

operation company.

July 2004 The JSDA changed to the new structured organization consisting of three departments:

Self-regulation, Securities Strategy, and General Affairs and Administration. The JSDA also

merged with the Association of Tokyo Stock Exchange Regular Members.

December 2004 The JSDA closed the over-the-counter securities market and the Jasdaq Securities

Exchange, Inc. started business.

April 2005 The JSDA integrated the Japan Institute for Securities Information and Public Relations.

September 2007 With the implementation of the FIEA, the JSDA became an Authorized Financial

Instruments Firms Association.


Major Activities

I. Self-regulatory Activities

1. Establishment and Execution of Self-regulatory Rules The JSDA has established many types of self-regulatory rules to be applied to Association Members to

enhance fair and smooth execution of the financial instruments business in order to promote the efficient

administration of securities markets.

2. Execution of On-site Inspection and Off-site Monitoring The JSDA conducts on-site inspections in relation to internal administration system and compliance with

the statutory laws and regulations and/or JSDA’ self-regulatory rules concerning the business activities

of Association Members. The JSDA also monitors the business conditions and segregated custody of

customers’ assets of Regular Members.

3. Exercise of Self-regulatory Disciplinary Actions In cases of violation of statutory laws and regulations and/or JSDA’s self-regulatory rules by Association

Members and/or their officers and employees, the JSDA strictly enforces self-regulatory disciplinary actions

in order to avoid the recurrence of such violations.

4. Qualification Examination, Qualification Renewal Training and Registration of Securities Sales Representatives The JSDA conducts qualification examinations for securities sales representatives and regulatory training

courses such as Qualification Renewal Training in consideration of the high public status of the financial

instruments business and the importance of its social obligations, and carries out registration of securities

sales representatives, which is entrusted to it by the Commissioner of the Financial Services Agency.

5. Counseling concerning Customer Complaints over Securities Transactions, etc. and Mediation Services Under the FIEA, the JSDA provides counseling services relating to customers’ complaints concerning

the business of Association Members and Financial Instruments Intermediary Service Providers, and

also provides mediation services to settle disputes over securities transactions, etc. between Association

Members and their customers.

The JSDA currently commissions this business to the specified nonprofit organization, Financial

Instruments Mediation Assistance Center (FINMAC).

6. Improvement and Expansion of the OTC Bond MarketPublic and corporate bonds are mostly traded on the OTC market in Japan. To enhance fair and efficient

bond transactions, the JSDA is trying to improve the OTC bond market by establishing or revising systems

or business practices related to OTC bond transactions.


Prof i le

7. System Reforms for Off-Exchange Transactions of Listed Stocks, etc. The JSDA is engaged in necessary system reforms to make the system for transactions of listed stocks

outside the financial instruments market of an exchange more fair and efficient and to ensure investor

protection.

8. System Reforms for the “Green Sheet” and Trading Mechanism of Unlisted Securities The JSDA is engaged in necessary system reforms to promote efficient fund-raising by unlisted companies

and smooth circulation of unlisted securities as well as to ensure investor protection.

9. Execution of Operation as Authorized Personal Information Protection Association As an Authorized Association for Protection of Personal Information under the “Act on the Protection of

Personal Information”, the JSDA takes measures to ensure the proper treatment of personal information by

Association Members.

II. Activities as Trade Association

1. Research and Study, and Representations on the Financial Instruments Market To build a financial instruments market capable of gaining the highest confidence of investors and to

contribute to Japan's economic growth and development, the JSDA is carrying out research projects and

studies about system and taxation issues on financial instruments businesses and markets, and presenting

proposals to the government and other related parties toward the realization of the results of those

investigations. One of the main issues that the JSDA is advocating is more desirable taxation systems for

financial and securities transactions.

2 Establishment of a Common Infrastructure for the Securities Market To improve investor confidence in and vitalize the securities market, the JSDA is engaged in the

establishment of common infrastructure such as systems in the securities market.

3 Publication of Statistical Data, etc. regarding Equity and Bond Markets (1) Collection and Publication of Statistical Data about the Equity and Bond Markets

The JSDA collects and compiles various information concerning equity markets and bond markets

such as “Situation of the Equity Finance by Nationwide Public Companies” and “OTC Turnover per Type

of Bonds", and provides useful material for investors and Association Members.

(2) Publication of “Reference Statistical Prices (Yields) for OTC Bond Transactions” etc.

To provide a reference for investors and Association Members, the JSDA publishes, through its

homepage, “Reference Statistical Prices (Yields) for OTC Bond Transactions” for about 6,000 public and

corporate bonds and “Information on OTC Price Quotations” for about 50 corporate bonds targeting

individual investors every business day.


4. Reform and Expansion of the "Green Sheet" To promote efficient fund-raising by unlisted companies and smooth circulation of unlisted securities, the

JSDA is engaged in the reform and expansion of the “Green Sheet”.

(1) Management of Green Sheet Issues

The JSDA specifies securities as Green Sheet issues and revokes the designation.

(2) Dissemination of Green Sheet Information

The JSDA publishes information about issuers on the Green Sheet, quotations and transactions, and

other information with regard to the Green Sheet system through the Internet or other channels.

5. Publication of Price Quotation, etc., regarding Off-Exchange Transactions The JSDA compiles data reported by Association Members on transactions outside the financial

instruments market of an exchange and announces them over the Internet. Moreover, the JSDA

provides Association Members and investors with useful information by publishing real time information

concerning quotations and concluded contracts, etc., on PTSs (proprietary trading systems) for listed

stocks etc. through the Internet, and by publishing statistical information on PTSs through the Internet.

6. Promoting Knowledge Dissemination on and Understanding and Public Awareness of Securities and Finance The JSDA promotes knowledge dissemination on, and understanding and public awareness of securities

and finance. To do so, the JSDA strengthens the development of such activities for school education and

the general public with the fair and independently positioned Securities Education and Public Relation

Committee and the implementing arm, the Institute for Securities Education & Public Relations, both

acting as driving forces.

7. Liaison and Mediation among Concerned Organizations The JSDA promotes various policy measures by maintaining good liaison between Association Members

and other related organizations and mediating various opinions.

8. Implementation of Education and Training To improve the proficiency of officers and employees of Association Members, the JSDA executes various

educational training programs including statutory training and supports the dispatch of lecturers to in-

house training courses held by Association Members.

III. International Business and Exchange

To cope with the globalization of financial and capital markets, the JSDA participates in international

conferences such as the International Council of Securities Associations (ICSA), the Asia Securities Forum

(ASF), and the International Organization of Securities Commissions (IOSCO), and also conducts exchanges

of information and builds relationships with overseas securities industry related associations etc. In

addition, the JSDA promotes the Japanese market abroad, responds to overseas inquiries and collects

relevant information.


Prof i le

List of Regular Members (As of March 31, 2010)

HOKKAIDO DISTRICT

Joko Securities Co., Ltd.

TOHOKU DISTRICT

Daihoku Securities Co., Ltd.

Shonai Securities Co., Ltd.

Yamagata Securities Co., Ltd.

TOKYO DISTRICT

AIP Securities Co., Ltd.

Aizawa Securities Co., Ltd.

Akakiya Securities Co., Ltd.

Alba Ace Securities Co., Ltd.

AMP Capital Investors KK

Aozora Securities Co., Ltd.

Ark Securities Co., Ltd.

ARUJI GATE SECURITIES Inc.

Avalon Shonan Securities Co., Ltd.

AXA ROSENBERG INVESTMENT MANAGEMENT LTD.

Axes Japan Securities Co., Ltd.

Bansei Yamamaru Securities Co., Ltd.

Barclays Capital Japan Limited

BlackRock Securities Co., Ltd.

Bloomberg Tradebook Japan Ltd.

Bridge Capital Securities Co., Ltd.

Brown Brothers Harriman Securities (Japan) Inc.

Buko Securities Co., Ltd.

C&M Securities Co., Ltd.

CA-AM Securities Company Japan Ltd.

CAPF Securities Co., Ltd.

Capital Partners Securities Co., Ltd.

CATALYST Securities Co., Ltd.

Central Tanshi Securities Co., Ltd.

Chuo Securities Co., Ltd.

Citigroup Global Markets Japan Inc.

CLICK Securities, Inc.

CMC Markets Japan K.K.

Credit Suisse Securities (Japan) Limited

Daisei Securities Co., Ltd.

Daiwa Securities Co., Ltd.

Daiwa Securities Capital Markets Co., Ltd.

D. Brain Securities Co., Ltd.

Deutsche Securities Inc.

DMM.com Securities Co., Ltd.

Dojima Kanto Securities Co., Ltd.

Dreamvisor Financial Co., Ltd.

ECO-PLANNING SECURITIES Co., Ltd.

FIL Securities (Japan) K.K.

FinTech Global Securities, Inc.

Fortis Securities Ltd.

FXA Securities, Ltd.

FXOnline Japan Co., Ltd.

GAM Japan Limited

Gartmore Investment Japan Limited

GCM Investements Japan K.K.

Goldman Sachs Asset Management Co., Ltd.

Goldman Sachs Japan Co., Ltd.

HACHIJUNI Securities Co., Ltd.

Hamagin Tokai Tokyo Securities Co., Ltd

Himawari Securities, Inc.

Hitachi Capital Securities Co., Ltd.

H.S.Securities Co., Ltd.

i-NET Securities Co., Ltd.

ICAP Totan Securities Co., Ltd.

icapital, Inc.

Ichiyoshi Securities Co., Ltd.

IDO Securities Co., Ltd.

Iida Securities Co., Ltd.

ING Mutual Funds Management Company (Japan), Ltd.

Initia Star Securities, Inc.

Inter Swiss Trust Securities Company Limited

Interactive Brokers, Inc.

INVAST SECURITIES CO., LTD.

i SECURITIES Co., Ltd.

IS Securities Co., Ltd.

ITM Securities Co., Ltd.

ITOCHU Capital Securities, Ltd.

JAIC Securities Co., Ltd.

Japan Alternative Investment Co., Ltd.

Japan Asia Securities Co., Ltd.

Japan Bond Trading Co., Ltd.

Japan Securities Agents, Ltd.


Japan Wealth Management Securities, Inc.

Jbond Totan Securities Co., Ltd.

Jonan Securities Co., Ltd.

JPMorgan Asset Management (Japan) Ltd.

JPMorgan Securities Japan Co., Ltd.

J.P. Morgan Worldwide Securities Services Japan, Ltd.

JVIC SECURITIES COMPANY

Jyujiya Securities Co., Ltd.

Kabu.com Securities Co., Ltd.

Kaneju Securities Co., Ltd.

Kaneyama Securities Co., Ltd.

KAZAKA Securities Co., Ltd.

Kokufu Securities Co., Ltd.

Kurokawakitoku Securities Co., Ltd.

Kyokuto Securities Co., Ltd.

Kyowa Securities Co., Ltd.

Leading Securities Co., Ltd.

Lehman Brothers Japan Inc.

Liquidnet Japan Inc.

Man Investments Securities Japan, Limited

Marudai Securities Co., Ltd.

Marufuku Securities Co., Ltd.

Marukuni Securities Co., Ltd.

Marusan Securities Co., Ltd.

Master Securities Inc.

Matsui Securities Co., Ltd.

Meiwa Securities Co., Ltd.

Merrill Lynch Japan Securities Co., Ltd.

Mirai Securities Co., Ltd.

Mita Securities Co., Ltd.

Mito Securities Co., Ltd.

Mitsubishi Corporation Capital Ltd.

Mitsubishi UFJ Securities Co., Ltd.

Mitsubishi UFJ Merrill Lynch PB Securities Co., Ltd.

Mizuho Securities Co., Ltd.

Mizuho Investers Securities Co., Ltd.

Monex, Inc.

Money Partners Co., Ltd.

Morgan Stanley Japan Securities Co., Ltd.

Murosei Securities Co., Ltd.

Musashi Securities Co., Ltd.

Nagano Securities Co., Ltd.

Newedge Japan Inc.

NewSmith Capital Partners Japan Ltd.

New-S Securities Co., Ltd.

Niigata Securities Co., Ltd.

Nikko Cordial Securities Inc.

Nissan Century Securities Co., Ltd.

Nomura Securities Co., Ltd.

Northern Trust Global Investments Japan, K.K.

Nozomi Securities Co., Ltd.

ODL JAPAN Co., Ltd.

Okasan Online Securities Co., Ltd.

Okasan Securities Co., Ltd.

Okinawa Securities Co., Ltd.

One Asia Securities Co., Ltd.

Orient Securities Co., Ltd.

Orix Securities Corporation

PineBridge Investments Japan Co., Ltd.

Premiere Securities Co., Ltd.

Prestige Asset Management Co., Ltd.

Private Equity Securities., Co., Ltd.

Putnam Investments Securities Co., Ltd.

PWM Japan Securities Co., Ltd.

Rakuten Securities, Inc.

Reliance Japan Securities, Inc.

Retela Crea Securities Co., Ltd.

Russell Investments Japan Co., Ltd.

Sanei Securities Co., Ltd.

Sanko Securities Co., Ltd.

SBI Japannext Co., Ltd.

SBI Securities Co., Ltd.

SC Asset Management Co., Ltd.

Schroder Investment Management (Japan) Limited

Securities Japan, Inc.

Shinkin Securities Co., Ltd.

Shinsei Securities Co., Ltd.

Shin Tokyo City Securities Co., Ltd.

Shinwa SecuritiesCo., Ltd.

SMBC Friend Securities Co., Ltd.

Socius Securities Co., Ltd.

Sompo Japan DC Securities Inc.

Sony Bank Securities Incorporated

Sparx Securities Co., Ltd.

SPC Securities Inc.

Starts Securities Co., Ltd.


Prof i le

State Street Global Advisors (Japan) Co., Ltd.

State Street Global Markets Securities Co., Ltd.

Strategic Investments KK

Superfund Securities Japan Co., Ltd.

Tama Securities Co., Ltd.

The Air’s Sea Securities Co., Ltd.

The Arts Securities Co., Ltd.

The Bank of New York Mellon Securities Company Japan Ltd.

The G-Stock Securities Co., Ltd.

The Joyo Securities Co., Ltd.

The Miki Securities Co., Ltd.

The Nakahara Securities Co., Ltd.

The Naruse Securities Co., Ltd.

The Tachibana Securities Co., Ltd.

Tobu Securities Co., Ltd.

TOGAKU Securities Co., Ltd.

Tokai Tokyo Securities Co., Ltd.

Tokyo Principal Securities Co., Ltd.

Tokyo Securities Transfer Agent Co., Ltd.

Tomioka Securities Co., Ltd.

Touchstone Capital Securities Co., Ltd.

Tower Securities Co., Ltd.

Toyo Securities Co., Ltd.

Traders Securities Co., Ltd.

Tradition Securities Japan Co., Ltd.

UBP Investments Co., Ltd.

UBS Global Asset Management (Japan) Ltd.

Ueda Yagi Securities Co., Ltd

Unimat Securities Co., Ltd.

United World Securities (Japan) K.K.

Usuki Securities Co., Ltd.

Utsunomiya Securities Co., Ltd.

Vanguard Investments Japan, Ltd.

Wells Fargo Securities (Japan) Co., Ltd.

YAMAGEN Securities Co., Ltd.

Yamani Securities Co., Ltd.

Yamawa Securities Co., Ltd.

Yensai.com Co., Ltd.

121 SECURITIES Co., LTD.

NAGOYA DISTRICT

Ando Securities Co., Ltd.

Daiman Securities Co., Ltd.

Daitoku Securities Co., Ltd.

Hyakugo Securities Company Limited

Ise Securities Co., Ltd.

Kimura Securities Co., Ltd.

Kotobuki Securities Co., Ltd.

Maruhachi Securities Co., Ltd.

Matsusaka Securities Co., Ltd.

Nakaizumi Securities Co., Ltd.

Nobata Securities Co., Ltd.

Oishi Securities Co., Ltd.

Okachi Securities Co., Ltd.

Rokuni Securities Co., Ltd.

Shin-Ogaki Securities Co., Ltd.

SHIZUGIN TM SECURITIES Co., Ltd.

Shizuoka Tokai Securities Co., Ltd.

Tahara Securities Co., Ltd.

Toyota Financial Services Securities Corporation

Yutaka Securities Co., Ltd.

HOKURIKU DISTRICT

Imamura Securities Co., Ltd.

Isurugi Securities Co., Ltd.

Masumo Securities Co., Ltd.

Mitsui Securities Co., Ltd.

Sakamoto Hokuriku Securities Co., Ltd.

Shimadai Securities Co., Ltd.

Shinbayashi Securities Co., Ltd.

Takematsu Securities Co., Ltd.

Tomi Securities Co., Ltd.

Zukawa Securities Co., Ltd.

OSAKA DISTRICT

Ace Securities Co., Ltd.

Aioi Securities Co., Ltd.

Angel Securities Co., Ltd.

Banyo Securities Co., Ltd.

Cosmo Securities Co., Ltd.

Daiko Clearing Services Corporation

Eiwa Securities Co., Ltd.

EMCOM Securities Co., Ltd.

Hibiki Securities Inc.

Hikari Securities Co., Ltd.

Hinode Securities Co., Ltd.


Hirota Securities Co., Ltd.

Iwai Securities Co., Ltd.

Japan Private Asset Securities Inc.

Kanzaki Securities Co., Ltd.

Maruchika Securities Co., Ltd.

Miyako Securities Co., Ltd.

Naito Securities Co., Ltd.

Nara Securities Co., Ltd.

Nishimura Securities Co., Ltd.

Nishiwaki Securities Co., Ltd.

Okayasu Securities Co., Ltd.

Phoenix Securities Co., Ltd.

Pregian Securities Co., Ltd.

Rokuwa Securities Co., Ltd.

Sankyo Securities Co., Ltd.

Sasayama Securities Co., Ltd.

Takagi Securities Co., Ltd.

Tamaki Securities Co., Ltd.

The Kosei Securities Co., Ltd.

CHUGOKU DISTRICT

Daisen Hinomaru Securities Co., Ltd.

Hirogin Utsumiya Securities Co., Ltd.

Kitada Securities Co., Ltd.

Tsuyama Securities Co., Ltd.

Utsumiya Securities Co., Ltd.

Yahata Securities Co., Ltd.

YM Securities Co., Ltd.

SHIKOKU DISTRICT

Awa Securities Co., Ltd.

Ehime Securities Co., Ltd.

Futanami Securities Co., Ltd.

Kagawa Securities Co., Ltd.

Mitoyo Securities Co., Ltd.

Tokushima-Godo Securities Co., Ltd.

KYUSYU DISTRICT

Iizukanakagawa Securities Co., Ltd.

Maeda Securities Co., Ltd.

Sasebo Securities Co., Ltd.

Star Asset Securities Co., Ltd.

Daikumamoto Securities Co., Ltd.

FOREIGN SECURITIES COMPANIES

Alliance Bernstein Investments, Inc., Tokyo Branch

BGC Shoken Kaisha Limited

BNP PARIBAS Securities (Japan) Limited

CIBC World Markets (Japan) Inc.

Credi Agricole Securities Asia B.V.

Dresdner Kleinwort (Japan) Limited

FTN Financial Asia Limited.

GFI Securities Limited

HSBC Securities (Japan) Limited

HYUNDAI SECURITIES CO., LTD.

Instinet Japan Limited

Itaú Asia Securities Ltd.

ITG Japan Ltd.

Jefferies (Japan) Limited

KBC Financial Products UK Limited

Macquarie Capital Securities (Japan) Limited.

Natixis Securities Ltd.

RBC Capital Markets (Japan) Limited

RBS Securities Japan Limited

Ramius Japan Ltd

Societe Generale Securities (North Pacific) Ltd.

Tradeweb Europe Ltd.

Tokio Marine Financial Solutions Ltd.

Tullett Prebon (Europe) Limited

UBS Securities Japan Ltd.

JSDA on the Internet

JSDAhttp://www.jsda.or.jp/

JSDA (English website) http://www.jsda.or.jp/html/eigo/

Foreign Securities Transactionhttp://www.jsda.or.jp/html/foreign/

Green Sheet Markethttp://www.jsda.or.jp/html/greensheet/

Reform Promotion Center for Securities Clearing and Settlement Systemhttp://www.kessaicenter.com/

Institute for Securities Education & Public Relationshttp://www.skkc.jp/

Japan Securities Dealers AssociationHead Office

5-8, Kayaba-cho Nihonbashi 1-chome, Chuo-ku, Tokyo 103-0025

Tel: +81-3-3667-8537

Fax: +81-3-3666-8009

jsda japan annual report 10

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