Japan

Market Infrastructure

Japan FSA Reviews Proposal to Reorganise Tokyo Bourse

By Editors | 22/11/2019

The proposal would recast the TSE’s existing boards into a “prime” market for blue chips, a “standard” market for mid-tier companies and a “growth” board for startups.

Securities / Derivatives

Tokyo Exchange Goes Live with Upgraded Trading System

By Editors | 07/11/2019

The upgrade will reduce sudden stock price fluctuations, enable participants to more easily execute trades at closing prices, and stabilise system performance.

Capital / Liquidity

Japan Banks to Gain Easier Access to Capital from Larger Peers

By Editors | 05/11/2019

Under a special measure to be launched in March, a bank’s capital-to-asset ratio will not be reduced when it invests in a struggling peer.

Market Infrastructure

BOJ Calls for Applications from Aspiring Benchmark Administrators

By Editors | 30/10/2019

The BOJ committee is soliciting entities that can begin calculating and publishing term structures based on JPY overnight index swaps as prototype rates.

AML / KYC

FATF Begins Assessment of Japan’s AML Regime

By Editors | 30/10/2019

For the first time, cryptocurrency exchanges will also subject to the review, the first assessment of Japan’s AML system in 11 years.

Fintech / Regtech

TSE to Explore New Uses for Margin Trading, Short Selling Data

By Editors | 26/10/2019

Data relating to margin transactions and short selling will be made available to testing participants to identify possible new applications of the data.

Market Infrastructure

BOJ Warns of Financial Risks from Easy Lending, CLO Exposures

By Manesh Samtani | 25/10/2019

The BOJ warns of a buildup of risks from lending to “low-return borrowers”, delayed loan restructuring, and overseas exposures to leveraged loans and CLOs.

Capital / Liquidity

Recession Fears Prompt Japan to Stress Test Major Financial Firms

By Editors | 22/10/2019

The BOJ and FSA will jointly coordinate stress tests on Japan’s three G-SIBs and four D-SIBs to assess how capital and liquidity could be affected if stocks fell and the yen spiked.

Securities / Derivatives

UPDATED – Japan Cabinet Approves Tougher Foreign Investment Rules

By Editors | 21/10/2019

Japan’s proposal to lower the notification threshold for foreign investors has passed the cabinet and could become law by early April, with exemptions for foreign FIs.