Inspection/Ensuring Trustworthiness of Trading Participants

Summary of Participants Examination and Inspection Departments Activities

Update : Jan. 31, 2008

The Participants Examination and Inspection Department carries out several activities which are designed to ensure the reliability of trading participants on the TSE market. The department conducts research on the degree to which trading participants abide by the Financial Instruments and Exchange Law and TSE rules and regulations. It is also responsible for conducting oversight of the financial health of trading participants as well as handling decisions related to punishment for violations.
There are approximately 40 staff members in the Participants Examination and Inspection Department, and they are divided into three groups. First there is the General Administration group. This group, in addition to planning and making preparations for inspections, is responsible for examinations for the acquisition of trading qualifications.
Next, there is the Information Analysis Group which is primarily responsible for providing support to inspectors through the collection of information, etc.

The third group is the Inspection Group, which conducts the actual inspections.

General Administration Group	This group handles rules and decisions related to inspections. It also carries out the planning and preparation for inspections as well as the details of punishment or penalties for trading participants who violate the laws or regulations. In order to ensure the reliability of trading participants, this group conducts offsite monitoring of trading participants' financial standing as well as the status of executives and major shareholders. It also conducts examinations related to the acquisition of trading qualifications and mergers, etc.
Information Analysis Group	This group gathers and analyzes information for inspections, and examines inspection results. It also interprets the laws and regulations by collecting and publishing case studies which may be used as precedents. The group handles inquiries from trading participants related to the laws, etc. and dispatches lecturers to trading participants' compliance seminars.
Inspection Group	This group assesses trading participants' compliance with laws, rules, and regulations, as well as the conditions of the servicing of internal risk management.