2  For monthly statistics of major payment and settlement systems in Japan, see the Payment and Settlement Statistics released on the Bank’s web site (http://www.boj.or.jp/en/index.htm). 3  After LBJ’s failure, a chain of settlement fails has spread to the broad JGB markets via the CCP and other market participants who had bilateral contracts with LBJ.
Since many institutional investors had little tolerance to settlement fails, market participants in general became concerned about the creditworthiness of counterparties, and the liquidity of repo market has shrunk. To address these issues, the securities industry is working to increase acceptance of settlement fails and reviewing the fails practice. See Bank of Japan, Financial Markets Department (2009b) (available only in Japanese).