Update : Apr. 01, 2014
"Trading participant" refers to entities holding qualifications to directly participate in the TSE market for listed securities(trading qualification).
Only financial instruments business operators (a general term for securities companies and foreign securities companies), which are approved after TSE's qualification acquisition examination, are qualified to become trading participants.
Furthermore, acquisition of Japan Securities Clearing Corporation clearing qualifications or (in cases where clearing will not be conducted by such operator) designation of an agency clearing participant with which clearing is entrusted is generally required when acquiring TSE trading qualifications.
The Remote Trading Participant system allows foreign financial instruments firms without business bases in Japan to directly participate in the TSE market as trading participants. It was introduced in February 2009.
Remote trading participants are able to acquire the same trading qualifications as those of regular trading participants. However, applicants are required to be authorized pursuant to the Financial Instruments and Exchange Act (FIEA) as a Transaction-at-Exchange Operator (Note) and then approved as a remote trading participant after TSE's qualification acquisition examination.
Furthermore, remote trading participants are able to conduct transactions in the same manner as regular trading participants. However, they are not allowed to accept orders entrusted by residents in Japan or provide clearing services at their companies (they are required to designate an agency clearing participant when acquiring TSE trading qualification(s)). In cases where remote trading participants accept orders entrusted from overseas, prior approval from TSE will be necessary.
The qualification acquisition examination criteria are comprised of quantitative formal criteria and qualitative substantive criteria. For details, please see the following table.
|Capital stock||JPY 300 million or more|
|Amount of net assets||JPY 500 million or more and in excess of the capital amount|
(Non-consolidated) More than 200%
(In cases where the applicant is a Special Financial Instruments Business Operators, the consolidated Capital-to-Risk Ratio shall exceed 200 %.)
The following company structures shall be established from the viewpoint of executing fair and smooth exchange trading and preventing accidents, etc.
The following costs and deposits are required to acquire trading qualifications.
|Expense Item||Amount, etc.|
(For a remote trading participant, the amount splited by one-tenth)
|General Trading Qualification: JPY 100 million (tax-excluded)|
|Qualification Examination Fees||JPY 1 million(tax-excluded)|
|Deposit Item||Deposits, etc. (Securities can be deposited in lieu of cash; provided, however, this is not applicable for a remote trading participant)|
|Participant bond||JPY 3 million|
|Trading participant security money||In the first year, the total amount of "basic fees" + "trading system facility usage fees" and the amount equivalent to an average monthly amount for two months of "trading fees" + "access fees" paid by trading participants who has the same trading qualification|
In addition to the above costs, fees for system interface and terminal setting related to the Trading System / Market Information System, etc. are also required. (These fees vary depending on the interface composition. TSE explains details in the qualification acquisition process.)
For the TSE rules related to trading participants, please refer to the following pages.