JAPAN: FSA researching new measures on Japan short selling

Tuesday November 16 2010

It has been reported that the Japanese Financial Services Agency is currently considering revising securities legislation with the intention of limiting short selling in conjunction with public stock offerings and broadening the application of laws prohibiting insider trading. The Financial Services Agency is examining whether Japan should apply laws on insider trading to those with second-hand or third-hand knowledge of undisclosed company news, as well as considering a rule similar to that of the US that limits short sales of shares in companies selling new stock. Japan currently prohibits naked short selling, with an uptick requirement and an obligation to report transactions above 0.25% to exchanges through securities firms.

This information will be updated as further details become available.