Tokyo Stock Exchange: Trading Suspension Of Mito Securities Co., Ltd.

TSE suspended Mito Securities Co., Ltd. (Mito Securities) from trading in the TSE market in relation to the following business pursuant to the Trading Participant Rule.

• Iwaki branch's commissioned business of stocks, convertible bonds and exchange traded funds from July 22 to July 25, 2002,
• Main branch sales department's, Mito, Tsuchiura, Tsukuba, Kawaguchi, Tateyama and Sahara branches' commissioned business of stocks and exchange traded funds from July 22 to July 25, 2002,
• Toride, Koyama and Kashiwa branches' commissioned business of stocks from July 22 to July 25, 2002.
• Above suspension excludes operations that may significantly harm customers' benefit such as closing margin transactions and the Kanto Local Finance Bureau admits.

Conclusion of a contract to manage a discretionary account 33 staff of Mito Securities concluded contracts with clients to manage discretionary accounts, which enabled them to decide whether to purchase or sell, issues, volume and price without obtaining individual consent from the clients. And they executed many transactions based on these contracts.

The conduct above was found to be Mito Securities ' violation of the Article 42 (1) (v) of the Securities Exchange Law.

The Kanto Local Finance Bureau ordered Mito Securities to suspend the above mentioned securities business.