Update : Jul. 16, 2013
The self-regulatory structure of the exchange is divided into listing-related operations and compliance operations. Listing-related operations comprise "listing examination," which is responsible for examining the financial strength and the soundness of management during listing process, and "listed company compliance," which monitors and examines listed company status in relation to the delisting criteria. Compliance operations are composed of "participants examination and inspections," which ensure the soundness and reliability of trading participants in their role of executing transactions and conducting clearing in the exchange market, and "market surveillance," which monitors for unfair trading, including market manipulation and insider trading.
The Listing Examination and Listed Company Compliance departments are responsible for listing-related operations, while the Participants Examination & Inspection and Market Surveillance departments are responsible for compliance operations. All departments accomplish their duties in close cooperation with one another. In addition to cooperative efforts between the self-regulatory departments, effective and efficient self-regulatory operations are ensured through coordination with related departments, including the Equities and Derivatives departments which monitor and supervise markets in real-time.
The Listing Examination Department is responsible for examining companies applying for initial listing. Listing examination is conducted according to criteria established for The Listing Examination Department is responsible for examining companies applying for initial listing. Listing examination is conducted according to criteria established for each market (1st Section, 2nd Section, Mothers, and JASDAQ) to determine whether companies which have applied for listing are eligible to become listed companies from the perspective of investor protection.
The Listed Company Compliance Department is responsible for operations related to the delisting of financial instruments, etc. and examinations of information disclosures conducted by the issuers of listed securities. It works to maintain and improve the quality of the financial instruments exchange market.
The Participant Examination & Inspection Department is responsible for inspections of the management structure and operations of trading participants (securities companies, etc.) of the entrusting financial instruments exchanges. In addition to carrying out disciplinary actions, etc. for violations of rules and regulations applied to trading participants, the department ensures the financial soundness of trading participants by maintaining an understanding of the state of their property and financial conditions. The department conducts on-site inspections to check whether trading participants appropriately conduct securities trading operations, complying with laws and regulations, and rules of entrusting financial instruments exchanges, and offers guidance as needed.
The Market Surveillance & Compliance Department is responsible for examining whether trading in the securities market is being conducted in a fair manner. In addition to conducting continuous monitoring for unfair trading, including market manipulation and insider trading, the department aims to prevent unfair trading by leading securities companies and other parties to promptly enact corrective measures when inappropriate trading is detected.