In November 2001 Credit Lyonnais executed short-selling of stocks by clients' order without legally required disclosure of the fact of short-selling to the stock exchange many times, because Credit Lyonnais did not confirm whether or not the sale of the stocks were short sales.
In addition, by the investigation on sampling trading days, Credit Lyonnais was found to have conducted short sales at a price lower than the latest published price immediately prior to the short sale.
In November 2001 Credit Lyonnais executed short-selling of stocks on its own account without legally required disclosure of the fact of short-selling to the stock exchange many times, because Credit Lyonnais did not confirm its own possession balance.
The conduct above was found to violate the Article 26-3 (1) and (2), the Article 26-4 (1) of the Cabinet Order (the Securities and Exchange Law) and the Article 162 (1) (i) of the Law, both of which regulate short-selling.
The Financial Services Agency ordered Credit Lyonnais to suspend all the stock trading on its own account from February 28, 2002 until March 13, 2002 except the execution of transactions contracted on or before February 27 and commissioned business of the sale or purchase of stocks by affiliated companies from February 28, 2002 until March 13, 2002.
