Information related to Integration of Cash Equity Markets

Listing

Update : Jul. 10, 2013

print

Listing

OSE-listed Stocks that will be Listed on TSE upon Integration

Upon the integration of the cash equity markets of TSE and OSE on July 16, 2013 (hereinafter the "integration date"), stocks that are listed only on OSE as of the day prior to the integration date will be listed on similar market divisions of TSE.
For your information, the stocks that are expected to be listed on TSE upon integration can be found in the document below.

Stock which will be listed on TSE on July 16, 2013
(As of Jul. 2, 2013)
Excel

Of the above-mentioned stocks, those which have been designated as "Securities to be Delisted" or other by OSE as of the day prior to the integration date shall be similarly designated by TSE on the integration date.
For your information, such stocks can be found in the document below.

Stocks that are expected to be designated as "Securities to be Delisted" or other on the integration date
(As of Jul. 10, 2013)
Excel

* Please note that the information will be updated as necessary.

Result of Choice of Listed Market by Issuers of Cross-listed Stocks

Upon the integration of the cash equity markets TSE and OSE on July 16, 2013, stocks that are currently cross-listed in the following manner will be listed on the TSE market division chosen by their issuers. The document below contains the results of the choice of listed market by issuers of such stocks.
- Stocks cross-listed on the TSE First Section and the OSE Second Section
- Stocks cross-listed on the TSE Second Section and the OSE First Section
- Stocks cross-listed on the TSE First or Second Section and OSE JASDAQ

Choice of Listed Market
(As of Jul. 9, 2013)
Excel

* Please note that the information will be updated as necessary.

Trading

Handling of trading on the integration date

(1) Base prices on the integration date

The base price of an OSE-listed stock on the integration date will be applied based on the final price or corresponding price on its listed market as of the business day before the integration date (i.e., July 12, 2013 (Fri.)) as follows.

Listed markets before integration
("and" indicates cross-listing)
Reference market for final price or corresponding price on July 12, 2013 (Fri.)
OSE 1st or 2nd Section OSE
OSE JASDAQ OSE JASDAQ
TSE and OSE main markets
(1st and/or 2nd Section)
TSE
TSE main market and OSE JASDAQ TSE; however, if listed on TSE JASDAQ after integration: OSE JASDAQ

(Note)

  • (*) For an issue that does not fall under any of the above categories of listed markets (CB, ETF, ETN, REIT, venture fund, and country fund), if it is cross-listed on TSE and OSE, the final price or corresponding price of the issue on TSE on July 12, 2013 (Fri.) will be used as the base price. If it is listed only on OSE, the final price or corresponding price of the issue on OSE on July 12, 2013 (Fri.) will be used.
  • (*) For an issue whose ex-date for dividend or other corporate action falls on the integration date, the base price will be calculated based on the final price or corresponding price and reflect the amount of dividend or that corresponding to the corporate action.

(2) Handling of ToSTNeT transactions

For OSE-listed issues, single-issue, basket, and closing price transactions on the integration date will be available from 8:20 a.m. based on the base price for the day.
However, for issues listed only on OSE, transactions based on previous day VWAP will not be available on the integration date.

Handling of base prices of cross-listed foreign issues after integration

The handling of base prices of foreign issues which are cross-listed on TSE will be similarly applied after integration to base prices of foreign issues which are cross-listed on OSE.
For foreign issues currently cross-listed on OSE, the base prices will be applied as follows.

(1) MORGAN STANLEY ASIA-PACIFIC FUND, INC. (8682)

- On the next business day following the integration date, it will be designated as an "issue whose base price will be applied based on the previous day's final price, etc. in the exchange market."

- The base price on the integration date will be the final price or corresponding price on OSE on July 12, 2013. (However, if such base price deviates significantly from the most recent price or corresponding price of the foreign security on its main foreign financial instruments exchange converted into yen before the start of the trading session on the integrate date, the base price will be changed to said most recent price converted into yen.)

(2) MediciNova, Inc. (4875)

- Since its main market is OSE, it will be handled in the same manner as a domestic stock.
- The base price will be the final price or corresponding price on TSE on the previous business day.
- As for the base price on the integration date, it will be the final price or corresponding price on OSE on July 12, 2013.

(Note)

  • (*)For details on how base prices of cross-listed foreign issues are set, please refer to "Products –Foreign Stocks – Trading – (3) Base price."

Handling of trading units of venture funds, country funds, and foreign stocks

The trading units of OSE-listed venture funds, country funds, and foreign stocks after integration will be the trading units used at OSE.
The venture funds, country funds, and foreign stocks currently listed on OSE are as follows.

(1) Venture funds

Issue Code Trading unit
Venture Business Investment Corporation 8720 10 units
Venture Revitalize Investment Inc. 8721 10 units

(2) Country funds

Issue Code Trading unit
MORGAN STANLEY ASIA-PACIFIC FUND, INC. 8682 100 units

(3) Foreign stocks

Issue Code Trading unit
MediciNova, Inc. 4875 100 shares

Margin Trading

Selection of OSE-listed issues as standardized margin trading issues or loan trading issues

(1) Issues listed only on OSE

Out of issues listed only on OSE, for an issue that is selected as a standardized margin trading issue or loan trading issue in the OSE market on the day before the integration date, it will be selected respectively as a standardized margin trading issue or loan trading issue in the TSE market on the integration date.

(2) Cross-listed issues

Out of cross-listed issues, for an issue that is selected as a standardized margin trading issue or loan trading issue in the OSE market on the day before the integration date but is not selected as a standardized margin trading issue or loan trading issue in the TSE market, it will be selected respectively as a standardized margin trading issue or loan trading issue in the TSE market on the integration date.

Disqualification of OSE-listed issue as loan trading issue

For the disqualification as loan trading issue of an issue listed only on OSE that is designated as a loan trading issue in the TSE market on the integration date, during the period from the integration date to the end of the first business year, accounting period, or business period on or after one year has elapsed counting from the integration date, the criteria mentioned below will be applied according to those specified in the selection rules of OSE on the day before the integration date.

<Criteria for disqualification of stocks, etc. as loan trading issues>
- No. of tradable shares: Less than 1,100 units
- No. of shareholders: Less than 400

<Criteria for disqualification of real estate investment securities as loan trading issues>
- No. of listed beneficiary certificates or investment units: Less than 10,000 units
- No. of investors: N/A

Grace period pertaining to disqualification of OSE-listed issue as loan trading issue

With regard to an issue listed only on OSE that is selected as a loan trading issue in the TSE market on the integration date and is in a grace period pertaining to disqualification as a loan trading issue as specified by the selection rules of OSE, for an issue that falls under the criteria for the number of floating shares or the number of shareholders, the date of entry into such grace period in the OSE market will be deemed to be the date of entry into a grace period pertaining to disqualification as a loan trading issue in the TSE market.

Revision to criteria for selection of standardized margin trading issues

Out of the current criteria for selection of standardized margin trading issues, the criteria for the number of tradable shares, number of shareholders, trading volume, ratio of number of active trading days, and corporate performance will be abolished. New criteria requiring the determination of an initial price and not falling into a state of liabilities in excess of assets will be added.

In connection with this revision, for issues that are not selected as standardized margin trading issues on the integration date (including OSE-listed issues) under the previous criteria but satisfy the revised criteria for selection of standardized margin trading issues, they will be selected as standardized margin trading issues on the integration date.

The criteria for selection of loan trading issues will remain unchanged. For OSE-listed issues that are not selected as loan trading issues on the integration date in accordance with (1) above, the examination for selection in the TSE market will be conducted from issues whose business year, accounting period, or business period ended in February 2013 onward.

Revision to criteria for disqualification of standardized margin trading issues and loan trading issues

Out of the current criteria for disqualification of standardized margin trading issues, the criteria for the number of tradable shares and the number of shareholders will be abolished. A new criterion on falling into a state of liabilities in excess of assets will be added.
In connection with this revision, a new criterion on falling into a state of liabilities in excess of assets will also be added to the criteria for disqualification of loan trading issues.

Succession of unsettled accounts pertaining to standardized margin trading in OSE-listed issues

Unsettled accounts between a trading participant and its customer pertaining to standardized margin trading in the OSE market conducted on the day before the integration date can be handled on and after the integration date as unsettled accounts pertaining to such trading in the TSE market.

In such cases, such unsettled accounts pertaining to standardized margin trading of customers conducted in the OSE market will be deemed as unsettled accounts pertaining to such trading in the TSE market on and after the integration date.

The trade execution date in the TSE market of such unsettled accounts pertaining to standardized margin trading will be the date it was executed in the OSE market.

Handling of daily disclosure and regulatory measures on OSE-listed stocks

For an issue listed only on OSE that is subject to daily disclosure or regulatory measures in the OSE market on the day before the integration date, it will be subject to the same measures in the TSE market on the integration date.

For a cross-listed issue that is subject to daily disclosure or regulatory measures in the OSE market on the day before the integration date but not in the TSE market, as a general rule, such issue will be subject to the same measures in the TSE market on the integration date.

Publication of outstanding margin trading] (currently only available in Japanese)

In the following publications on outstanding margin trading, from the dates below onward, outstanding margin trading in issues listed only on OSE will be newly included under TSE, and the sum of outstanding margin trading at TSE and OSE in cross-listed issues will be published.

Publication Date
Outstanding margin trading by issue From July 17th publication (i.e., July 16th applications) onward
Current outstanding margin trading (by negotiable margin trading/standardized margin trading) From July 23rd publication (i.e., July 19th applications) onward
End-of-week outstanding margin trading by issue
Current outstanding margin trading From July 24th publication (i.e., July 19th applications) onward

Clearing & Settlement

Clearing of securities trading

Securities trading at TSE will continue to be cleared by Japan Securities Clearing Corporation (JSCC) on and after integration of the cash equity markets.

Integration of clearing organizations

As of July 16, 2013, the clearing organization for futures and options traded on OSE will be consolidated to JSCC. From such day onward, JSCC will clear futures and options trading conducted at OSE.

Others

Handling of stock price indices in cash equity market integration

(1) Handling of TOPIX

OSE-listed stocks (not listed on TSE) that will be listed on the TSE 1st Section in connection with cash equity market integration will be included in TOPIX as follows in order to minimize the liquidity impact of the inclusion.

Date of inclusion in TOPIX (end of trading of date indicated) Free-Float Weight (FFW) for TOPIX Calculation
Aug. 29, 2013 Actual FFW × 0.5
Oct. 30, 2013 Actual FFW × 0.75

(2) Handling of indices calculated by OSE

The following JASDAQ indices currently calculated and published by OSE will continue to be calculated and published by TSE after cash equity market integration.
•JASDAQ INDEX
•JASDAQ INDEX (Standard)
•JASDAQ INDEX (Growth)
•J-Stock Index
•JASDAQ-TOP20

For details, please refer to the following page.

Top of Page