Information related to Integration of Cash Equity Markets

Margin Trading

Update : Apr. 26, 2013

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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

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