Trade Practice Surveillance
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Trade Practice Surveillance
To ensure the fairness of its market, TOCOM carefully monitors unfair transactions, such as market manipulation, or conducts that might result in unfair transactions. In particular, TOCOM is carefully monitoring the following conducts that are likely to lead to unfair trades.
(1) Placing and Canceling Large Amount of Orders Relative to Prevailing Market Conditions
In principle, such conducts will be investigated, for they could have a significant impact on prices and disrupt the market.
(2) Canceling Orders Shortly After Having Placed Them
In principle, such conducts will be investigated, for it might suggest that the orders were placed without intent to let them be executed.
(3) Conducting Transactions Where the Buyer and the Seller Is the Same Entity, or Several Entities Collaborating with One Another
In principle, such conducts will be investigated, for it might suggest that the orders were placed for a purpose other than undertaking a bona fide trade (e.g.: price manipulation, wash trade, etc.)
(4) Placing Orders with Prices Substantially Away From Prevailing Market Conditions
In principle, such conducts will be investigated, for they could result in large price movements or trigger the circuit breaker unnecessarily, which might disrupt the market.
(5) A Sudden Increase in Trading Volume and Concentration Ratio
TOCOM might investigate a situation where there is a sudden increase in volume or increase in the transaction concentration ratio of a particular participants in comparison to past data.
(6) Involvement with price fluctuation
TOCOM might investigate a situation of the participants involved with the transaction that caused a rapid price change relative to prevailing market conditions.
This English version is a non-official translation of the original Japanese version. If differences arise between the Japanese and English versions, the Japanese version shall prevail.
The information contained in this document is subject to change.
