Press Conference by the Commissioner

(Excerpt)

March 17 , 2003

Q.

What do you think about the critical opinion that has been raised since you announced the measures for stock markets last week, which argues that some issue may be brought up this time again, regarding the liquidity or short selling, for example? I also understand that you are planning to promptly make requests etc. concerning some items out of the six items that have been announced. Could you please tell us about the requests etc. that have already been made or are scheduled to be made, if any?

A.

Concerning the first point you raised, although signs of improvement have been recognized in the state of the economy and corporate management, stock markets are currently in an unstable state due to the increasingly serious international situation etc. that lies in its background. We developed the recently-announced measures as we found necessary, from the viewpoint of ensuring the proper operation of the stock markets under such circumstances. I believe that sufficient effects will be achieved in line with that viewpoint.

We wish to implement all items promptly.

In specific terms, as an instrument for rigorous surveillance, the 'Liaison Council for Market Monitoring' was established on March 14 by and between the Securities and Exchange Surveillance Commission and the Tokyo Stock Exchange. To my knowledge, its first meeting will be held this evening.

Concerning the so-called 'close-price guaranteed transactions' described in the second item, we have already requested the parties concerned, including the Japan Securities Dealers Association and stock exchanges, to take measures and, as a result, they are now in the process of examining the issue carefully.

Concerning the 'stricter risk management of dealings by securities companies' in the third item, we are hoping, if possible, to develop necessary administrative guidelines within this week.

Concerning the 'relaxation of regulations on purchases of own stocks,' we put the draft of the Cabinet Ordinance under the public comment process on March 13. We are hoping, if possible, to have it promulgated and put into force by March 24.

Also concerning the 'proper management of funds by institutional investors,' we forwarded requests to the institutions concerned just last week. Those institutions are each in the process of carefully examining the issue now.

Lastly, regarding the 'request for due consideration for stock markets on selling shares,' we have already made relevant requests to financial institutions.

Site Map

top of page