• JPN FSA proposed revisions to cabinet orders and cabinet office ordinances with regard to the Financial instruments and exchange act (FIEA) enacted on 22 May 2024.
• Follows JPN FSA December 2022 issued 2nd interim report of market system working group.
• Also follows JPN FSA March 2024 submitted revisions re FIEA and trusts.

Proposed Revisions

• Revised FIEA allows private trading systems handling only unlisted securities with low liquidity, limited trade volumes, to operate as type I financial instruments business only.
• Set the criteria for trading volume of securities for which approval is not required.
• In addition, relax the upper limit on the trading volume of auction trading.
• Based on the Financial System Council's report, which also recommended the creation of a system to ensure fairness in trading and transparency of prices, the exemption of PTS transactions similar to off-floor trading from 5% takeover bid (TOB) rule.

Consultation Period

• Comments shall be submitted by 13 October 2024.