Press Conference by Shozaburo Jimi, Minister for Financial Services

(Excerpt)

(Friday, August 6, 2010, from 5:39 p.m. to 5:51 p.m.)

[Opening Remarks by Minister Jimi]

I have nothing in particular to report to you today.

[Questions & Answers]

Q.

With upper limits on foreign exchange (margin) trading now effective starting this month, people have been heard to voice various concerns.  Could you please tell us how you view what is going on?

A.

Since trends in foreign exchange (forex or foreign exchange margin) trading volumes are affected by a wide variety of factors, foreign exchange market trends being a foremost example, I would like to refrain from personally making any comment on this issue.  As, in any case, a high-leveraged forex transaction might expose the customer to the risk of suffering a loss unexpectedly by even the slightest fluctuation, I do find these new margin limits to be a necessary regulatory step from the viewpoint of investor protection.

I believe that for the benefit of forex trading in Japan in the future, it is important to restore the soundness of forex trading first under these newly introduced limits.

As you know, a good number of forex traders are actually individuals (investors), which is another reason why investor protection is indeed an imperative perspective.

(End)

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