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Tokyo Stock Exchange (hereinafter "TSE") has imposed disciplinary action (censure) against Kabu.com Securities Co.,Ltd. (hereinafter "the Company") pursuant to the provisions of Rule 34, Paragraph 1 of the Trading Participant Regulations. Additionally, TSE has requested the Company to submit a business improvement report pursuant to the provisions of Rule 19, Paragraph 1 of the Trading Participant Regulations.
At the same time, Osaka Exchange (hereinafter "OSE") has imposed disciplinary action (censure) against the Company pursuant to the provisions of Rule 42, Paragraph 1 of the Trading Participant Regulations. Additionally, OSE has requested the Company to submit a business improvement report pursuant to the provisions of Rule 17, Paragraph 1 of the Trading Participant Regulations.
Outline of Violation
Inadequate system management
The management of the Company lacked awareness regarding the importance of system risk management and was requested to rectify deficiencies regarding the analysis of system malfunctions and the quality control process after the joint inspection conducted by the self-regulatory organizations. However, the following inadequacies are deemed to remain in system management.
(1) Extremely inappropriate management of system malfunctions
(2) Deficiencies in the management of system development
(3) Ineffective internal audit function
- ･DISCLAIMER: This translation may be used for reference purposes only. This English version is not an official translation of the original Japanese document. In cases where any differences occur between the English version and the original Japanese version, the Japanese version shall prevail. This translation is subject to change without notice. Tokyo Stock Exchange, Inc., Osaka Exchange, Inc., Japan Exchange Group, Inc., and/or Japan Exchange Regulation shall individually or jointly accept no responsibility or liability for damage or loss caused by any error, inaccuracy, misunderstanding, or changes with regard to this translation.
