Clifford Chance
Significant changes to the Japanese short selling regulations
26 September 2013
On 21 August 2013, the Financial Services Agency of Japan (FSA) published its final version of the Cabinet Order and the relevant subordinate regulations intended to amend the Japanese short selling regulations. The amendments, which will take effect on 5 November 2013, include:
- Significant changes to the reporting and disclosure of short selling positions including, a widening of the scope of transactions subject to the requirements and changes to the applicable reporting and disclosure thresholds;
- Significant changes to the uptick rule; and
- The introduction of anti-avoidance type provisions relating to the ban on naked short selling.
This client briefing explains the new regulations focusing on those amendments that we consider particularly important for foreign investors.
