• TAI EXC revised Rules governing early warnings for overall operational risk of securities firms, in order to refine early-warning indicators for securities firms.

Revisions

• Definitions, terminology are updated for consistency and to reflect growing complexity.
• Unrestricted loans, all client financing are consolidated to assess overall credit risk; new indicators assess risks in securities lending, short selling, day-trading activities.
• Early warning signals now track both indicator levels and their rate of increase, focusing on emerging risks in credit, wealth management, and custody businesses.
• Alert thresholds are refined for exposures to small-cap, highly volatile, or abnormally traded stocks; numbering adjustments are made for new indicators and metrics.

Effectiveness

• Effective from the monthly report for October 2025, to be filed in November 2025.