Download Markets and Global Business Unit

Overview of Our Trust and Banking Services and Business
A Transaction Structure That Responds to Customers’ Global Business
Markets and
Global Business
Unit
Enhancing services that leverage our overseas network
to support customers’ global business
Mitsubishi UFJ Trust and Banking’s market services
cover investment in government bonds, stocks, and
other securities in the world’s major financial markets,
and balance sheet management through necessary
procurement of funds in yen or foreign currencies.
Our foreign currency exchange services provide
customers with exchange transaction services 24
hours a day using our locations in Tokyo and
overseas. In ever-fluctuating foreign exchange
markets, we provide support for reducing the
exchange risk of corporations, institutional investors,
and other customers in Japan and overseas.
The globalization of Japanese corporations is
accelerating. The areas where they are advancing
and the types of deals they are making are diversifying and becoming more complex, and they require a
high level of service in the area of foreign exchange
transactions. Further, owing to the worldwide drop in
interest rates, domestic and international investors are
seeking high returns and turning to new investment
products, and we also have to satisfy the needs of
those investors.
We will continue to enhance our lineup of new
products and services to meet such customer needs.
Serving as Infrastructure for Customers
Expanding Their Business Globally
Iwao Nagashima Chief Executive, Markets and Global Business Unit
The environment surrounding economies at home and abroad is constantly changing and is increasingly unclear, as evidenced by the slowdown in emerging countries’ economies, the rise in geopolitical risk*, and the adoption of a negative interest
rate policy by the Bank of Japan. The Markets and Global Business Unit supports
sound bank operation by MUTB through a variety of marketable transactions, including bonds, foreign exchange, and derivatives (financial derivative instruments).
At the same time, the unit addresses the foreign exchange transaction needs
of customers expanding their business globally, with attentive service provided
through a network that includes our overseas branches.
As the cross-border deals of corporations diversify,
providing customers with a variety of foreign currency trading opportunities has become an important
business. We are building a structure enabling
transactions with customers 24 hours a day, in cooperation with our branches in Tokyo, London, and
New York, for scenarios such as a New York branch
handling service for a customer who wishes to
conduct transactions at night in Tokyo.
The value of inter-company trade has reached a
huge scale, so that a move of JPY 0.01 in exchange
rates has a large impact on transaction amounts and
can cause clients to make unexpected losses. We
strive to provide improved service to customers
expanding their business globally, by, for example,
providing them with market information so they can
make the right trade at the right time.
24-hour trading structure
New York
market
21:00
6:00
Tokyo Time
London
market
Tokyo
market
15:30
Attentive Service for Global Asset Management
While quantitative easing continues worldwide, a
variety of new financial products are created each
day to satisfy investors’ needs, and many are managed in the form of investment trusts or funds.
We focus on foreign exchange* transactions in
funds, aggressively engaging in sales through the
deployment of full-time customer dealers and the
use of online foreign exchange transaction systems.
As cross-border transactions expand in funds
managed by domestic and overseas investment
firms, the foreign exchange transaction needs of
these funds are diversifying and becoming more
complex. We are actively undertaking the strengthening of businesses ancillary to such funds. We
quickly assess increasingly diverse and complex
needs, and, in addition to the development of
foreign exchange transaction schemes matched to
fund operation, provide high value-added services
such as the provision of timely market information.
Moreover, as customers wish to conduct transactions at different times depending on their
locations, we offer global and seamless service
through cooperation with our overseas branches.
Fund scheme example
Fund
Mandates
Administrator, Trustee
Management
Instructions
Investment
Manager
Entrust
Forex Orders
Funds
Settlement
Custodian
(Custody Bank)
MUTB
(Forex Bank)
Securities Settlement
Securities
Orders
Brokers
* Foreign exchange generated by management of foreign currencies in trust assets
* The risk of an increasingly unclear outlook for specific local economies or the global economy overall due to heightened political
or military troubles in a region.
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Mitsubishi UFJ Trust and Banking Report 2016
Mitsubishi UFJ Trust and Banking Report 2016
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