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

TSE requested Matsui Securities Co., Ltd. (Matsui Securities) to submit a business improvement report regarding clarification of locus of responsibility, enforcement of its internal control system including check of advertisements, and assurance of strict compliance by the directors and staff.

From July, 2003 to April, 2005, Matsui Securities, in solicitations of customers, displayed to cause misapprehension through advertisements which did not describe any expiration dates for margin transactions, though such dates were set in certain cases such as stock splits.

The above act is acknowledged as an 'act of displaying to cause misapprehension concerning important facts in relation to securities trading' outlined in Item 1, Article 4 of the Ordinance of Cabinet Office Concerning Regulation of Conduct of Securities Companies based on Item 10, Paragraph 1 of Article 42 under the Securities and Exchange Law.