Tokyo Stock Exchange Requests Century Securities Co., Ltd. To Submit A Business Improvement Report

TSE requested Century Securities Co., Ltd. (Century Securities) to submit a business improvement report regarding (i) ensuring stable system operations immediately, early restoration of system in trouble and appropriate customer service, (ii) adequate verification of present system conditions and establishment of necessary improvement schemes including introduction of an external system audit for system improvement and an effective contingency plan, (iii) clarification of locus of responsibility for inappropriate measures related to system troubles.

Before Century Securities introduced a new system for acceptance and placement of orders on October 12, 2004, it had not made preparations for a sufficient system test, an explanation to customers and an effective contingency plan. After the introduction, it didn't take sweeping measures for prevention of recurrence of system troubles and for customer service maintenance including system inspection, set-up of its own system control which did not depend on external entity too much, equipment of a manual for customer service maintenance and implement of system audit, and ran business in unstable system conditions.

The above act is acknowledged to be 'the state that a securities company is not deemed to have a sufficient degree of control of electronic information processing system relating to securities dealers' outlined in Item 11 of Article 10 under the Ordinance of Cabinet Office Concerning Regulation, etc. of Conducts of Securities Company based on Item 2 of Article 43 under the Securities and Exchange Law.