When we look back at the Japanese financial markets from this perspective, we see that every attempt to introduce a new financial product, such as commercial paper or securitized instruments, required a lengthy process before the product could actually be launched.
This was because there was always heated debate about whether the new product could be construed as a negotiable security under the Securities Exchange Act of 1948, in order to determine which type of financial institution, that is, securities companies or banks, would handle the product.