JAPAN: FSA publishes feedback and final regulations on Japan short selling

Tuesday August 27 2013

The Japanese FSA has published the feedback received to its consultation on Japanese short selling.

As previously reported, the FSA is introducing a permanent short selling regime, and had consulted on changes to the Order for Enforcement of the Financial Instruments and Exchange Act. The proposals were as below:

• Notification from 0.2% (currently 0.25%)
• Change reports at every 0.1%
• Disclosure from 0.5%
• Uptick rule where 10% fall in price relative to the previous day`s closing price
• Extension to transactions conducted on proprietary trading systems
• Prohibition on naked short selling

The amendments to the legislation which will introduce the above permanent regime will enter into effect on 5th November 2013.

Click on the above link for details of the legislative amendments (only available in Japanese).