The FSA decided to extend the existing temporary measures on short-selling and on the provisions regarding the purchase of own stocks by listed companies until July 31, 2009.
The FSA decided to extend the existing temporary measures on short-selling until 31 July 2009.
The following regulatory measures on short-selling are already in place as permanent measures, with regard to all listed stocks in Japan:
Ø An "uptick rule requirement" which prohibits, in principle, short-selling at prices no higher than the latest market price;
Ø Requirements for traders to verify and mark whether or not the transactions in question are short-selling; and
Ø Request on exchanges to make daily announcements on their aggregate price of short-selling regarding all securities and aggregate price of short-selling by sector. In addition, the FSA has put in force the following measures, as temporary measures effective until March 31, 2009.
Ø Naked short-selling is prohibited; and
Ø Holders of a short position of a certain level or more (in principle, 0.25 percent or more of outstanding stocks) are required to report to exchanges through securities firms. Exchanges are required to publicly disclose such information.
Also, the FSA decided to extend the temporary measures on the provisions regarding the purchase of own stocks by listed companies until July 31, 2009.
Press release
© FSA Japan
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