JAPAN: FSA extends temporary Japan short selling measures to 31st October

Wednesday April 24 2013

The Japanese FSA has announced that the existing temporary measures on Japan short selling, due to expire on 30 April 2013, will be extended until 31 October 2013.

The temporary measures are as follows:

Short selling regulation

1) Prohibition of naked short selling (short selling without ownership or arrangement to borrow shares at the time of sale)

2) Reporting and public disclosure regime for short positions equal to, or exceeding, 0.25 percent of the issued shares in principle

Measures to relax restrictions on share repurchases by publicly listed companies

1) The daily maximum repurchase volume allowed was relaxed, from 25 percent of the average daily trading volume over the four week period immediately preceding the repurchase, to 100 percent.

2) The rule prohibiting companies from repurchasing their own shares during the last 30 minutes of the trading close, has been lifted.

Note that the FSA has issued a public consultation on introducing a permanent regime regulating short selling transactions – for analysis of the new measures, anticipated in November this year, click here.

Click on the above link for more details.