Tokyo Stock Exchange: Trading Suspension Imposed Upon Credit Agricole Indosuez Securities (Japan) Limited, Tokyo Branch

On March 19 2002, in order to maintain business relations with a certain corporate customer, the Branch solicited securities transactions from that customer by promising to waive a claim that, according to the contract between the Branch and the customer, the customer was to pay as a result of the cost arising from the customer's failure to deliver stocks for a prior transaction.

The above acts are found to be a ''solicitation with promise of special benefit'' as determined in Article 4(ii) of the Cabinet Office Ordinance Concerning Regulation, etc. of Conducts of Securities Company, and thus to have violated the Article 42 (1) (ix) of the Law.

In October, 2002, the Branch did not confirm whether or not stock orders from a client were short-sales. The Branch also routed short-sale orders by the client through a stock exchange member firm many times without disclosing, as is legally required, the fact that they were short sales.

The above acts are found to have violated Article 26-3 (3) and (4) of the Cabinet Order based upon the Law and the Article 162 (1) (i) of the Law, both of which regulate short-selling