JAPAN: OSE Disciplinary Action on Barclays Capital Japan Limited for illegal Japan short selling

Thursday October 20 2011

The Osaka Securities Exchange have imposed a disciplinary action on Barclays Capita Japan Limited pursuant to Rule 42(1)(ix) of the Regulations for Transaction Participants for illegal Japan short selling.

OSE imposed a fine of JPY 20 million on the Firm for Short-Selling in breach of the Financial Instruments and Exchange Act, and inadequate management of the electronic data processing systems for the financial instruments business.

Additionally, OSE requested the submission of a business improvement report pursuant to Rule 17 of the said Regulations. The business improvement report shall include:

– Reestablishment of the internal control system, including the management of the electronic data processing systems through pursuing the cause of this violation of laws, rules and regulations and introducing preventive measures against recurrence of the violation;

– Implementing training, etc. of all officers and employees in order to foster the proper understanding and compliance with the laws, rules and regulations;

Click on the above link for more details.