Japan extends short selling rules
22 October 2010 Tokyo
Image: Shutterstock
The Japanese FSA has announced that short selling restrictions will remain in place until the end of January 2011.
Currently, short selling is prohibited at prices no higher than the latest market price, with traders required to verify whether transactions could be considered as short selling; and the exchanges are required to make daily announcements on the aggregate price of short selling regarding all securities.
There were further restrictions on naked short selling and the reporting of large short positions, as well as an upper limit on the daily purchase volume and restricted trading hours.
All rules were due to end on October 31, but the FSA has extended the laws until 31 January 2011.
Currently, short selling is prohibited at prices no higher than the latest market price, with traders required to verify whether transactions could be considered as short selling; and the exchanges are required to make daily announcements on the aggregate price of short selling regarding all securities.
There were further restrictions on naked short selling and the reporting of large short positions, as well as an upper limit on the daily purchase volume and restricted trading hours.
All rules were due to end on October 31, but the FSA has extended the laws until 31 January 2011.
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