Press Conference by ASO Taro, Deputy Prime Minister, Minister of Finance, and Minister of State for Financial Services
(Tuesday, March 24, 2020, 9:15 am to 9:21 am)
Amid the widely spreading COVID-19 virus, global financial and capital markets have been volatile. Facing the end of the fiscal year in Japan, the Financial Services Agency (FSA) will keep an eye on the markets with heightened caution to prevent fraudulent activities and other activities that would increase volatility. In Japan, in response to the 2008 financial crisis, permanent measures were put in place to ensure fair trading practices, including the prohibition of naked short selling and short selling at a price below the most recently executed contract price in the event of significant price drop, as well as reporting and public disclosure requirements on short-sell positions. In stock exchanges, measures have been implemented to prevent sudden market changes, including daily price limits or daily loss limit for spot trading and temporary suspension of futures trading or the system of circuit breakers. The FSA will operate these measures/systems appropriately. It will also collaborate with the Securities and Exchange Surveillance Committee and stock exchanges to closely monitor fraudulent activities, including market manipulation, regulate short-selling, and handle violations strictly. In addition, while continuing to monitor market trends, the FSA will respond promptly if additional measures are deemed necessary from the viewpoint of ensuring fair trading practices. Please ask FSA staff for detailed information.
[Questions and answers:]
You noted strengthening your market surveillance and regulating short-selling in view of the fiscal year end. Please explain the background and your specific concerns?
It would concern the increased volatility and who would benefit from selling and buying stocks.
That would be investors?
I don’t believe so.
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