24th March, 2020
Statement by Minister for Financial Services, on ensuring sound market function and market fairness
1. As a result of the impacts of the COVID-19 outbreak, fluctuation in global financial and capital markets has been observed. While the end of the fiscal year is approaching, the Japanese Financial Services Agency (JFSA) is determined to carefully monitor market developments with heightened alert, making sure that we prevent activities accelerating market instability and market abuse.
2. In Japan, based on the response to the global financial crisis in 2008, the JFSA has already put in place permanent measures prohibiting naked short-selling and short selling at prices no higher than the immediate market price under severe downturn, and requirements on reporting and publishing short positions to ensure market fairness.
Also, the stock exchanges have implemented measures to prevent sudden price fluctuation such as limit-downs on daily stock prices and circuit breakers to suspend futures trading.
3. While applying those measures appropriately, the JFSA will cooperate with the Securities and Exchange Surveillance Commission (SESC) and the stock exchanges to conduct a thorough monitoring of market manipulation and other market abuse, and to take rigorous actions against violations, including strict enforcement of restrictions on short selling.
4. If further action is necessary from the standpoint of ensuring market fairness during the course of continued monitoring of market developments, the JFSA will take measures accordingly in a prompt manner.
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