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Today, OSE took disciplinary action on TOYO SECURITIES CO., LTD. (hereinafter referred to as the "Company") pursuant to Rule 42, paragraph 1 (9) of the Regulations for Transaction Participants as follows, and demanded the Company to submit a business improvement report pursuant to Article 17 of the Regulations for Transaction Participants. The business improvement report shall include:
- Reestablishment of internal control systems through pursuing the cause of this violation of laws, rules and regulations and introducing preventive measures against recurrence of the violation.
- Implementing training, etc. of all officers and employees in order to foster the proper understanding and compliance with laws, rules and regulations.
- Clarification of the locus of responsibility based on this disciplinary action.
- Discipline
OSE imposed a fine of JPY 7 million on the Company. - Reason for the Discipline
It is recognized that the Company committed the “Acceptance of Transactions to Create Artificial Market Conditions”. Such actions are deemed to fall under "Actions of acceptance, etc. of bids or offers for a listed financial instrument, etc., while knowing that such intentional actions do not reflect actual market conditions" as prescribed in Article 117, Paragraph 1, Item 20 of the Cabinet Office Ordinance on Financial Instruments Business, under Article 38, Item 6 of the Financial Instruments and Exchange Act.
