As you know, JSCC is a CCP for over-the-counter (OTC) JGB transactions and plays the role of a buyer to every seller and the role of a seller to every buyer, and provides guarantee for settlements even in the case of the default of a buyer or seller.
That experience highlighted the importance of central clearing and led market participants to promote the wider use of JSCC in JGB transactions. Against that background, trust banks, which are major providers of funds in the JGB repo market, are expected to use JSCC in the form of so-called “repo trust” in the first half of 2014.