Gen-saki is a secondary bond market in Japan, also known as the pension market for its resemblance to repo trading. The saki market evolved in the 1950s due to the lack 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`s transactions are available for all maturities up to one year, but most agreements are within three months or less. When setting the saki gene interest rate, the yen is often the basis of a short-term reference rate, as it accurately reflects the deposit market rate. The step towards the gen-saki trade in Japan is a step towards the international standard for retirement. Traditionally, Japan had used a “gene tan” buyback model using cash as a guarantee of credit and credit. The gradual shift to gen-saki trading in Japan improves market efficiency and shortens the settlement cycle. Many believe that its introduction, fueled by advanced technology, represents an important growth opportunity and could lead to future structural changes in Japanese money markets. * Foreign financial institutions, etc., include the following foreign capital companies: C.

Bonds (limited to those indicated in the currency indicated in points a. to d. of (B) above, with the exception of foreign companies issued by foreign companies established in accordance with the provisions of particular foreign laws and regulations, provided that foreign companies are under the control of the foreign governments (limited to points a. to d. of point B above). * Declared foreign companies are foreign companies that are not foreign financial institutions, etc. (limited to companies from contracting countries). The above condition covers cases in which certain foreign companies that receive interest are trustees of the Qualification Foreign Securities Trusts Investment Company.

A. JGB for the transfer of bonds and shares of shares of companies, which are prescribed by the Law on the Transfer of Bonds and Shares of Enterprises. Note: This exemption does not apply when certain foreign companies that receive interest (with the exception of trustees of Securities Securities) are covered by persons related abroad, such as.B certain financial institutions, etc., who pay the interest. For example, bonds issued and guaranteed by foreigners (limited to the countries listed below). Limited to those indicated in the following currencies according to the following categories of foreign countries: Gen-saki means translated into English “present” (gen) and “future” (saki). Trading Gen Saki involves buying or selling bonds with an agreement to sell or buy them back after a certain period of time. Gen-saki is used for the purchase and resale of corporate and government bonds in the medium and long term. * The interest shown represents the interest received by foreign companies from certain financial institutions, etc., on the transactions mentioned above (1) and (2).

If the interest received by foreign enterprises with a permanent establishment in Japan is income subject to Japan`s withholding tax under Article 141(1)(a) of the Corporate Tax Law, the exemption measure shall not be applied. (Note): If the above A`s are mentioned. the exemption measure does not apply to foreign companies among foreign financial institutions, etc., that receive interest, which fall into one of the following three categories. . . .