Japanese Government Bonds (JGBs) are predominantly traded over-the-counter (OTC), where, in principle, price is determined through negotiation between the parties. The Japan Securities Dealers Association (JSDA) uses fair business practice regulations to require each securities company to follow rules that ensure fair and smooth OTC bond transactions. To improve price setting on the OTC market, JSDA publishes reference prices for OTC bond transactions each business day based on reports from members and other financial institutions.