In connection with the transition to the paperless share system to be implemented on January 5, 2009(*1), the Tokyo Stock Exchange (TSE) is announcing the following points to consider about trades in domestic stocks, etc. just before the transition to the paperless share system.
1. T+4 Settlement of Domestic Stock Trades Executed on December 25, 2008
As of the fixed date of Tuesday, December 30, 2008, the Japan Securities Depository Center will provide issuers notice of beneficial shareholders regarding the transition to the paperless share system..
In conjunction with this action, regular transactions of domestic stocks, preferred equity investment securities, and investment securities executed on the TSE market on Thursday, December 25, 2008 will be settled on Monday, January 5, 2009 (T+4 settlement).(*2)
2. Trading Suspension for a Pre-determined Period (From December 25 to December 30)
In order to consolidate fractional shares (meaning fractions under one share) in transition to the paperless share system, some listed companies are planning to conduct stock splits (including gratis allotment of fractional shares, etc.) and adopt Share Unit systems.
Trading of these stocks will be suspended from December 25, 2008 to December 30, 2008, and will then resume on January 5, 2009.
Please also note that the TSE will not adjust base prices for said stock splits during said trading suspension. Instead the TSE will use adjusted base prices on the day trading is resumed, i.e. on January 5, 2009.(*3)
The following stocks will be subject to the trading suspension (As of December 10, 2008)
| Issue | Code |
|---|---|
| Coca-cola Central Japan Co., Ltd. | 2580 |
| Nippon Paper Group, Inc. | 3893 |
| DENTSU INC. | 4324 |
| ROUND ONE Corporation | 4680 |
| Toa Valve Holding Inc. | 6466 |
| KYOTO KIMONO YUZEN CO.,LTD. | 7615 |
| Resona Holdings, Inc. | 8308 |
| Sumitomo Mitsui Financial Group, Inc. | 8316 |
| Sapporo Hokuyo Holdings, Inc. | 8328 |
| The Yachiyo Bank, Limited | 8409 |
| Mizuho Financial Group, Inc. | 8411 |
| East Japan Railway Company | 9020 |
| NIPPON TELEGRAPH AND TELEPHONE CORPORATION | 9432 |
| Impress Holdings, Inc. | 9479 |
For more details about the dematerialization of share
certificates (the paperless share system), please access the website of Reform
Promotion Center for Securities Clearing and Settlement System
Reform
Promotion Center For Securities Clearing And settlement System/Reports Release
*1 The cabinet ordinance released on November 19, 2008 prescribes that the date for transition to the paperless share settlement system shall be January 5, 2009.
*2 Transition to the paperless system will not affect other securities such as foreign stocks, ETFs, and CBs. Transactions of these securities executed on December 25, 2008 will be settled on December 30, 2008 (T+3 settlement) except when the trade date falls on an ex-dividend date, etc.
*3 Adjusted base price information, which is distributed by the TSE’s market information system, will be distributed on December 30.
