Investor Communications Japan (ICJ), a joint venture by global Fintech leader, Broadridge Financial Solutions, Inc. (NYSE:BR), and the Tokyo Stock Exchange Inc. (TSE), announced today that they agreed to launch a new digital vote execution service that significantly accelerates end-to-end automation of proxy voting to Japanese issuers.
The new service expansion will increase voting participation by international investors and enable the Japanese market to improve corporate governance practices:
- Participating listed companies will be able to obtain greater transparency of the voting intentions of investors
- Local sub custodians will be able reduce risk and complexity from their operations.
“We continue to use our global expertise to ensure the ICJ platform provides market leading solutions to improve the proxy voting life cycle for corporate governance events,” said Shigeo Imakiire, ICJ President. “Japanese issuers participating in ICJ are providing institutional investors with faster access to meeting materials, expanded voting deadlines and accelerated voting capability.”
In the 2022 Japan proxy season, 1,654 companies listed on the Tokyo Stock Exchange participated in the ICJ platform, representing 90% of the companies in that market and 98% by market capitalization. Foreign institutional investors represented 81% of the total number of voting rights held by foreign institutional shareholders.
“This service evolution means all international investors and local sub custodians will benefit from its innovative and digitized e-voting service, driving efficiency and delivering greater transparency to both issuers and investors” said Demi Derem, managing director, International Solutions Banks, Brokers, and Dealers at Broadridge Financial Solutions. “ICJ has significantly improved corporate governance practices in Japan since its inception in 2004 and this new service offering is the latest example.”
“This new service should further strengthen the dialogue between shareholders and listed companies, as well as improve operational efficiency for all parties involved,” said Yasuyuki Konuma, Executive Vice President, Tokyo Stock Exchange. “We believe digital transformation in capital markets will improve productivity and promote growth in Japan.”
