Contents
Q1. What is “International Transactions in Securities”?
Q2. What is “designated major investors”?
Q3. When is the “International Transactions in Securities” published?
Q4. How are institutional sectors and investor types classified?
Q5. Are redemptions on government bonds included in the disposition?
Q6. When are transaction amounts recorded in ITS after taking place?
Q1. What is “International Transactions in Securities”?
A1. “International Transactions in Securities (ITS)” is the weekly and monthly statistics of the cross-border transactions and positions involving debt or equity securities, other than those included in Direct Investment or Reserve Assets of the balance of payments (BOP).
ITS is compiled from the reports of the major financial institutions (so-called “designated major investors”) determined by the Minister of Finance. Although the statistics of ITS data do not include all transactions as Portfolio Investment, these statistics are released one month earlier than BOP.
Note: Cross-border transaction data can be found in Portfolio Investment of BOP. Regarding the flow data, Japan’s BOP statistics are compiled every month and figures are released two months after the month in which transactions took place.
Portfolio Investment of BOP includes issuance amounts of yen-dominated foreign bonds (so-called samurai bonds), or foreign bonds issued by residents. ITS does not include such bonds.
In addition, BOP statistics also publish detailed data such as portfolio investment assets and liabilities by country breakdown, portfolio investment liabilities by types of debt securities, and portfolio investment assets by quotation currency. ITS does not.
Q2.What is “designated major investors”?
A2. The Minister of Finance designates deposit-taking corporations, financial instruments business operators (securities companies), life insurance companies, and investment trust management companies as “designated major investors” under Article 21 of “Ministerial Ordinance on Trade Relation Invisible Trade, etc.”
Q3.When is the “International Transactions in Securities” published?
A3. Basically, the weekly data is compiled for one week and is published on the fourth day of the following week. The monthly data is compiled for one month and published on the sixth day of the following month.
Q4.How are institutional sectors and investor types classified?
A4. Please refer to the following link to the Bank of Japan.
FAQs on the Balance of Payments Related Statistics (No.14)
https://www.boj.or.jp/en/statistics/outline/exp/faqbpsm6.htm#p14
Q5.Are redemptions on government bonds included in the disposition?
A5. Yes. Redemptions of government bonds issued overseas (such as U.S. Treasury) held by residents are included in the disposition of long-term or short-term debt securities in portfolio investment assets, depending on the maturity of the bonds at the time of issuance. Similarly, redemption amounts of Japanese government bonds held by non-residents are included in the disposition of long-term or short-term bonds in portfolio investment liabilities.
Q6.When are transaction amounts recorded in ITS after taking place?
A6. Securities purchases and sales are recorded as of the date the transaction is executed (execution date). Redemptions of bonds are recorded as of the redemption date.