Among the major market participants in Japan’s bond market are domestic and foreign securities companies that serve as dealers, brokers, traders, and underwriters in the primary and secondary markets.

In October 2004, the Ministry of Finance (MOF) launched a new primary dealer system -- the JGB Market Special Participant Scheme. Initially composed of 25 banks and securities companies approved by the MOF, the system aims to promote adequate financing and to bolster liquidity, competitiveness, transparency, and stability in the JGB market. Approved participants can take part in MOF buy-back auctions, apply for stripping and reconstruction of Separate Trading of Registered Interest and Principal Securities (STRIPS), participate in non-price competitive auctions and liquidity supply auctions, and be preferential counterparties for MOF interest rate swap transactions.

MOF holds a “Meeting of JGB Market Special Participants” to discuss with market participants and other experts latest information on market needs and trends, which the MOF will use to help formulate debt management policies. The JGB Newsletter link below provides more details of the system.

The Financial Services Agency (FSA), Japan Securities Dealers Association (JSDA), Japan Securities Depository Center, Inc. (JASDEC), and Tokyo Stock Exchange (TSE) provide lists of domestic and foreign securities brokers and dealers, and other key participants in the market.