The call money market was originally established and developed as a means for banks to adjust their liquidity with each other. It is the oldest money market in Japan. The call market is so named because funds are returned whenever the lender “calls”. It is used for lending and borrowing with funds using agreements of durations of less than one year.
- ●Uncollateralized call
- This fund transaction that does not require collateral was introduced in 1985 with the deregulation and internationalization of the money market. The weighted-average interest rate on overnight uncollateralized call transactions was the main operating target for the Bank of Japan’s money market operations prior to the current quantitative and qualitative easing monetary policies. It is still considered important as an indicator of short-term interest rates.
- ●Collateralized call
- Collateralized calls are highly secure collateralized fund transactions invented by Kaname Ueda, the Company’s founder. The transaction types are broadly separated into two types: “dealing method” (the tanshi company acts as the dealer in the transaction) and “broking method” (the tanshi company acts as a broker in the transaction).
- ●Intraday call
- Intraday call transactions are concluded in the same day. They are primarily used to balance shortage or surplus of funds due to timing differences in fund inflows and outflows during a day and settlements by private-sector settlements systems, such as Foreign Exchange Yen Clearing System (FXYCS) and Zengin net.