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Tokyo Stock Exchange Imposed A Penalty On Dresdner Kleinwort Wasserstein (Japan) Ltd

Date 27/06/2002

TSE imposed a penalty on Dresdner Kleinwort Wasserstein (Japan) Ltd. ("Dresdner") of JPY 7 million fine for short-selling and JPY 2 million fine for business without prior authorization, prior approval or notification to the FSA.
  1. Short-selling in breach of Securities & Exchange Law
    During the period between April 2001 and February 2002, Dresdner placed a number of its customers' short-selling orders without legally required confirmation to the customers and disclosure to the stock exchange that the orders are short-selling.
    During the period between December 2001 and February 2002, Dresdner placed a number of short-selling orders on its own account without legally required disclosure to the stock exchange that the orders are short-selling. In addition, Dresdner was found to have placed short-selling orders at the lower prices than the latest executed and published ones.

    The acts above are found to violate the Article 26-3 (1), (2), (6) and the Article 26-4 (1) of the Cabinet Order (Securities & Exchange Law) and Article 162 (1) (i) of the Securities & Exchange Law, both of which regulate short-selling.

  2. Securities business without prior authorization and non-securities businesses without prior approval of or notification to the FSA
    Dresdner conducted the following securities business without legally required prior authorization and non-securities businesses without legally required prior approval of or notification to the FSA;

  1. Intermediation of trade in over-the-counter derivatives contract on a security.
  2. Intermediation of credit derivative transactions.
  3. Intermediation of cash lending/borrowing.
  4. Intermediation of sale or purchase of monetary credit.
  5. Intermediation of trade other than one relating to securities

The acts above are found to violate the Article 7 of the Law on Foreign Securities Firms (LFSF), the Article 34 (3) and (4) of Securities & Exchange Law applied based on 14 (1) of the LFSF.