Tokyo Stock Exchange: Programs To Strengthen The Compliance Division’s Self-Regulatory Functions: “R+”

The Tokyo Stock Exchange’s Compliance Division has formulated “R +” ahead of the launch of operations by the self-regulatory corporation Tokyo Stock Exchange Regulation in November 2007. Based on this program, the TSE will promote efforts for further strengthening our self-regulatory functions in the future.

Below is an overview of the main points of the program. More details are available in the PDF file below.

1.Basic Policy

“Promote market integrity and investor confidence”

The Tokyo Stock Exchange (TSE) will make the following efforts to further enhance market fairness and reliability:

1. Further strengthen the preventive function that a self-regulatory organization should fulfill
2. Develop efforts to improve discipline among trading participants and other market-related parties
3. Proactively promote communication with market players, authorities, and other self-regulatory organizations
4. Promote innovation and efficiency of operations as well as develop and train human resources

2.Top Priority Issues and Specific Measures

1.Keeping Ahead of the Curve by Enhancing Initiatives to Strengthen Prevention Functions

As a self-regulatory organization closest to the market, the TSE will stay ahead of the curve by further utilizing the current functions for advanced prevention, and detecting potential problems at an early stage.

1. Reinforcing inspection in areas strongly connected to the market
2. Making active use of the recommendation system based on inspection results
3. Promoting expeditious market surveillance and early action
4. Enhancing research and study on future changes in the market environment

2.Strengthening Support for Compliance

The TSE will enhance preemptive compliance support to prevent trading participants and listed companies from violating laws, rules, and regulations.

1. Improving various training tools
2. Improving support and training systems

3.Reinforcing the Framework for Self-Regulatory Operations under the Financial Instruments and Exchange Law

The TSE will strengthen and enhance the framework for carrying out self-regulatory activities under the recently enacted Financial Instruments and Exchange Law.

1. Ensuring that the self-regulatory corporation will conduct its operations in an appropriate manner
2. Developing a framework for possible acceptance on consignment of self-regulatory operations from other exchanges

Programs to Strengthen Self-Regulatory Functions at Compliance Division