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February 2005

Update : May 02, 2005

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Partial revision of listing examination criteria following the re-definition of "False Statements" within the listing rules.

From April this year, the revised Securities and Exchange Law will be implemented and if a securities registration statement contains a false statement in any of the major elements, a new fine will be applicable. This revision will class new listing applications and securities' issuers who receive a fine as having committed a "false statement".


We are considering implementing the above on April 1 (date of implementation of revised Securities and Exchange Law), after considering public opinion.

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Amendments to the clauses regarding the establishment of a Foreign Securities Trading Account.

As part of the regulations, the agreement between securities companies regarding the clauses regarding foreign securities trading accounts is currently set by documents drawn up by stock exchanges and the Japan Securities Dealers Association. However, due to the revision of regulations and in response to product diversification, fundamental rules will be set by the regulations but the actual agreement is decided by each security firm and the clients.


This revision is being developed between the Tokyo Stock Exchange Inc., Osaka Securities Exchange and the Japan Securities Dealers Association. After receiving public comments the implementation should be on April 1.

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Revision of the amount of required deposit money

Currently, TSE requires a deposit from trading participants of 3 million Yen and a deposit of 300 thousand yen from each of the branches of the company (excluding the headquarters).


Originally, deposit money was introduced in order to protect clients that entrust orders through trading participants, but this has attenuated, especially since 1998 when the separate management of client assets and the fund for the protection of investors was introduced. At the same time, with online trading increasing, the presupposition whereby the number of branches has an influence on trading value is losing substance.


As a response to this situation, and in order to alleviate trading participant's administration, we have decided to change the amount of deposit money required to a fixed rate of 3 million yen.


We are considering implementing the above at the beginning of April this year, after considering public opinion.

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