JAPAN: REMINDER – new permanent measures on Japanese short selling take effect today, 5 November

Tuesday November 5 2013

As previously reported, the FSA is introducing a permanent Japanese short selling regime, following on from its consultation on changes to the Order for Enforcement of the Financial Instruments and Exchange Act. The new measures are 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 today, 5th November 2013.

Click here for the regulations in Japanese. Click here for an English summary of the measures provided by the FSA.