Status of Activiites

Status of Market Surveillance

Update : Dec. 03, 2012

The Market Surveillance and Compliance Department conducts examinations of trading conducted in the TSE market to determine whether or not there have been any unfair transactions. Based on these results, the TSE Regulation then issues cautionary warnings to trading participants or listed companies. The department also provides consultation to securities companies and listed companies on transactions and the legal framework.

Number of Examinations

Examinations are largely categorized into two levels: the "surveillance" level, in which potentially problematic cases are sifted out; and the "investigation" level, in which further detailed analysis is conducted of cases determined to be problematic at the surveillance level.

The surveillance and investigation levels can further be broken down into insider trading, market manipulation, and other unfair transactions.

Number of examinations

(Number of cases)

	FY 2009 Surveillances	FY 2009 Investigations	FY 2010 Surveillances	FY 2010 Investigations	FY 2011 Surveillances	FY 2011 Investigations
Insider trading	2,050	178	1,600	126	1,356	110
Market Manipulation	107	39	59	23	31	23
Others	664	3	872	0	1,033	2
Total	2,821	220	2,531	149	2,420	135

Number of Cautionary Notices

If, as the result of examinations, the Market Surveillance and Compliance Department deems that a trading participant's actions are or may be in violation of relevant laws and/or regulations, the department issues cautionary notices as necessary in order to prevent a recurrence of unfair transactions and/or prevent them before they occur.

Also, over the course of surveillance/investigation, if the Market Surveillance and Compliance Department deems that a listed company's internal administrative framework for preventing insider trading is insufficient, the department issues a cautionary notice to the listed company as necessary to request it to maintain and improve this framework.

Number of Cautionary Notices

(Number of notices)

	FY 2009	FY 2010	FY 2011
Trading Participants	6	8	4
Listed Companies	13	11	12

Number of Transaction Consultations

The Market Surveillance and Compliance Department has established a trading consultation service for issues related to insider trading or market manipulation regulations. The purpose of this service is to help solve any issues that securities companies and listed companies face in their daily activities, and to contribute to internal compliance.

Number of Transaction Consultations

(Number of cases)

Type of Consultation	FY 2009	FY 2010	FY 2011
Insider Trading	1,083	936	747
Share Buybacks	71	79	59
Short Selling	27	26	30
Trading Circumstances	79	57	80
Cross-trading	18	28	19
Finance-trading	35	16	10
Consignment	32	25	18
Margin Trading/When Issued Transactions	11	4	5
Tender Offers	29	32	19
Off-auction/Off-exchange	27	20	9
Others	34	20	6
Total	1,446	1,243	1,002