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The following regulatory measures on short selling are currently in place, with regard to all listed stocks in
1) An "uptick rule requirement" which prohibits, in principle, short selling at prices no higher than the latest market price;
2) Requirements for traders to verify and flag whether or not the transactions in question are short selling; and
3) Request the exchanges to make daily announcements on their aggregate price of short selling regarding all securities and aggregate price of short selling by sector.
In addition, the Financial Services Agency has put in force the following measures, as temporary measures effective until
1) Naked short selling (short selling in which stocks are not borrowed at the time of selling) is prohibited (effective since
2) Holders of a short position of a certain level or more (in principle, 0.25 percent or more of outstanding issued stocks) are required to report to exchanges through securities firms. Exchanges are required to publicly disclose such
Regarding the purchase of own stocks by listed companies, taking into consideration the of situation
1) Upper limit on the daily purchase volume
The limit will be raised from the current 25% to 100% of average daily trading volume during the four weeks immediately preceding the repurchase.
2) Timing of purchase
Companies are currently required to repurchase their own stocks during hours other than the 30 minutes immediately before the close of trading. This restriction will be lifted.
The FSA decided to further extend these temporary measures until