Trading

What are the supervision post and delisting post?

Update : Aug. 31, 2006

print

Answer:

TSE assigns listed stocks to the supervision post or the delisting post in order to warn investors of the situation of certain stocks and to give them enough time to prepare for when TSE decides to delist stocks.

Supervision Post
TSE assigns listed stocks to the supervision post when they are likely to fall under any of TSE's Delisting Criteria so that investors are properly warned and prepared. Listed stocks are assigned to the supervision post until the reason for assignment to the post is eliminated or until the stock falls under any of TSE's Delisting Criteria. In the former, the stock is then reassigned to ordinary trading while in the latter it is assigned to the delisting post. Trading methods for stocks in the supervision post are completely the same as those in ordinary trading.


Delisting Post
TSE assigns listed stocks to the delisting post in order to warn investors of the situation and to give them enough time to trade out of the stock after the listed stocks fall under the Delisting Criteria of TSE and TSE determines to delist them. In principle, TSE delists a stock after one month's trading in the delisting post. Trading methods for stocks in the delisting post are, in principle, the same as those in ordinary trading; however, TSE will expand the lower limit of the daily price limit of a stock to 1 yen in cases of major order imbalance. (Please see 'When does TSE broaden the daily price limits?'for more details.)

Top of Page