Market Surveillance/Monitoring for Unfair Transactions

1.Market Surveillance and Compliance Department

Update : Jan. 31, 2008

1.Market Surveillance and Compliance Department

In order to ensure the reliability and fairness of the market, the Tokyo Stock Exchange Regulation's Market Surveillance and Compliance Department conducts investigations of possible market manipulation and insider trading, etc. When an improper trade is discovered the department instructs securities companies, etc to take immediate corrective measures to prevent unfair trading.
The Market Surveillance and Compliance Department is composed of approximately 50 staff members divided into the following 3 groups which, in order to ensure swift organization, divide the work of the department.

Group	Description
Equity Market Surveillance Group	Staff members in this group are referred to as market analysts. These analysts are responsible for monitoring the trading conditions, checking for abnormalities, and conducting analysis of the securities which are divided up among them.
Derivatives Products Surveillance Group	Within the Market Surveillance and Compliance Department's analysis of marketable securities, this group monitors and analyzes equities, basket trades, arbitrage transactions, and the overall movements of the markets for abnormalities.
Planning, Coordination, and Trade Consultation Group	With the goal of increasing the efficiency and productivity, this group establishes various policies for the Market Surveillance and Compliance Department, and handles decisions related to the division rules, as well as any cooperative efforts with overseas self-regulation agencies. It also deals with consultations from trading participants, listed companies and investors, and conducts several informative or developmental activities for their benefit.