Update : Jan. 26, 2006
On September 13, the certified public accountants in charge of auditing Kanebo, Inc. were arrested on charges of being significantly involved in fraudulent entries in the company's annual securities report. CPAs are specialists in auditing and accounting, who are charged with protecting investors with ensuring the trustworthiness of financial documents and other information by evaluating them from an independent standpoint. As those who established the securities market, we understand that the Kanebo fraudulent entry problem, which had a significant impact on investors' trust in the market, as well as the fact that the CPAs were arrested, greatly shook investors' confidence in the adequacy of disclosure.
With this understanding, TSE President/CEO Tsurushima recently met with Chairman Fujinuma of the Japanese Institute of Certified Public Accountants, and, in light of the current situation, urged "a verification of auditing quality management circumstances with regards to CPAs and auditing firms, and to thoroughly inform them of points in being doubly sure in ensuring the adequacy of annual securities reports." President Tsurushima made this formal request in writing on September 16.
As the full facts of this case come to light through legal proceedings in the future, the Tokyo Stock Exchange strongly expects auditing firms and CPAs to work even harder in ensuring trustworthy audits, and will continue to be committed to improving confidence in the securities market.
On October 19, the JBG futures market at TSE will celebrate 20 years since its establishment.
In commemoration of this event, a 20-year anniversary of the establishment of the JGB futures market corner has been created on TSE's Japanese website, which features a quiz in addition to information such as the 20 year history of the market, all designed to familiarize as many as possible with JBG futures trading. Also, on October 18, trading participants and institutional investors will be invited to a reception held at the TSE Hall.
Despite the fact that the JGB futures and options market at TSE is one of the derivatives markets with the highest liquidity in the country, it is generally unfamiliar to many people. As such, we would like to introduce the history of the market below:
10-year JGB futures trading began at TSE on October 19, 1985 with the purpose of offering a method of hedging against price movements, taking into account the increase in government and corporate debt and developments in the liberalization of interest rates. Also, trading of options on 10-year JGB futures began in May 1990, from the viewpoint of answering the need for diversification in risk management methods. This options on 10-year JGB futures market marked 15 years since its establishment in May of this year.
We at TSE will continue our tireless dedication in providing a highly convenient market that can gain the support of a wide variety of investors in Japan and abroad by continuously listening to the voice of those involved in the market.