Update : Feb. 29, 2008
In order to prevent unfair trading, first and foremost, a thorough understanding of laws and regulations related to unfair trading is essential. As a means of providing support to investors, listed companies, and trading participants, at the TSE Regulation we provide a variety of different materials on our website as well conduct information sessions and publish instructive reports, etc.
We sincerely hope that our efforts will provide practical assistance to all those who utilize our markets. We strive to provide comprehensive explanations of our rules and sincerely appreciate all market users' continued cooperation and understanding.
In order to maintain the impartiality of the market, trading participants must be well-versed in the appropriate laws and regulations. For example, if a possible violation is discovered, a company's ability to contain any potential damage stemming from this violation is utterly indispensable.
To strengthen companies' know-how, etc., the TSE Regulation conducts several activities as a part of its efforts to prevent unfair trading such as market manipulation or insider trading. The TSE Regulation notifies companies about examples or precedents of investigations and holds meetings for persons in charge of market surveillance at trading participants. Also, in addition to actively conducting informational meetings for companies on request, the also TSE Regulation carries out briefings on relevant laws, and introduces examples from investigations as part of a comprehensive information campaign.
The TSE Regulation requests that trading participants, as gatekeepers for the exchange, recognize that they have play a significant role, and that they should make every effort to use the market in an efficient and impartial manner to avoid doing damage to the market's reputation for fairness.
Through close cooperation, trading participants and exchanges can prevent risks related to unfair trading before they occur and respond swiftly to any violations. As the TSE Regulation is available for consultations with trading participants at any time, please feel free to patronize this and other services; we hope that they will be useful in companies' individual compliance efforts.
The TSE Regulation has outlined three important steps that all listed companies must take in order to prevent insider trading. First, when dealing with company information which may influence investors, listed companies must take an active approach to ensure timely and appropriate disclosure. Second, to prevent untimely disclosure or improper use of internal information, listed companies must have appropriate internal systems to manage information, etc. Third, it is important for listed companies to educate their executives and employees as to the details and meaning of insider trading rules. A thorough and accurate understanding of the rules is an essential. Since acts of insider trading committed by employees or executives can negatively impact investors' faith in a companies stock as well as severely damage a company's image, it is of the utmost importance that listed companies recognize the significance of this problem and strive to achieve thorough compliance. We trust that listed companies will make work hard to ensure that their executives and employees have a complete understanding of the laws related to the market and to the buying and selling of stocks of ones own company.
The TSE Regulation provides consultations on individual transactions and on the subject of establishing and or managing internal rules related to the buying and selling of one's own company shares.