Gensaki Repo Agreement

The gen-saki market developed in the 1950s due to the absence of a secondary market in Japan for government bonds issued by the Bank of Japan. Gen-saki is open to companies and financial institutions and was also open to foreign investors until 1979. Gen Saki transactions are available for all maturities up to one year, but most agreements are within three months or less. When setting the saki gene rate, the yen is often the basis of the reference rate, as it accurately reflects the market price of deposits. Gen-saki is a secondary bond market in Japan, which is also known as repo-Markt for its similarity to pension transactions. Gen Saki`s move to Japan is a step towards the international standard for retirement operations. Traditionally, Japan has used a “gen tan” buyback model that uses cash as collateral for credit and credit. The gradual step towards the gen saki trade in Japan improves market efficiency and shortens the billing cycle. Many believe that their hypothesis, fuelled by advancing technology, represents a significant growth opportunity and could lead to future structural changes in Japan`s money markets. Gen-saki translated into English means “present” (gen) and “future” (saki). Trading Gen Saki involves buying or selling bonds with a deal to sell or buy them back after a certain period of time. Gen-saki is used for the purchase and resale of medium- and long-term corporate and government bonds.

(Note): If the foreign capital companies mentioned above, among foreign financial institutions, etc., which receive interest, fall into one of the following three categories, the tax-exempt measure is not applied. Some foreign companies are foreign companies that are not foreign financial institutions, etc. (limited to companies from contracting countries). The above condition includes cases where certain foreign companies that receive interest are trustees of Qualified Foreign Securities Investment Trusts. . For example, bonds issued and guaranteed abroad (limited to the countries listed below). Limited to the currencies shown in the following currencies according to the following categories of foreign countries: – Specified interest represents the interest received by foreign firms of certain financial institutions, etc. in transactions (1) and (2) above. If the interest received by foreign companies with a stable establishment in Japan is income subject to Japan`s withholding tax under Section 141-1-a of the Corporations Tax Act, the tax-exempt measure is not applied. A. Book transfers Mandatory JGB in the Accounting Management of Corporate Bonds and Shares Act – foreign financial institutions, etc., cover foreign capital companies: Note: This exemption does not apply when certain foreign companies that receive interest (excluding trusts of securities of qualified securities) are the responsibility of persons linked to foreign countries, such as z.B certain financial institutions Etc.