Legal Information

PTS Definition

PTS stands for Proprietary Trading System and is defined in FIEA Art. 2(8)(x) as "sale and purchase of securities through intermediary brokerage or agency service conducted electronically".

Clearing and Settlement of Trades

All trades on Japannext PTS are cleared and settled through Japan’s central clearing and settlement organizations:

Reporting of Trades

Under JSDA (Japan Securities Dealers Association) regulations, all trades must be automatically reported to JSDA within five minutes from the time when the transactions are concluded.

Short Sell Trading

Japannext PTS accepts short sell and short sell exempt orders from participating firms based on JSDA’s Short Sale Regulations. Regulations concerning handling of short-selling were revised in July 2010 by JSDA after the revision of FSA’s (Financial Services Agency's) Comprehensive Guidelines for Supervision of Financial Instruments Business Operators in March 2010.

10% PTS Ceiling Rule

The 10% PTS Ceiling rule CGSFIBO IV-4-2-1(iii)B restricts a PTS not to exceed 10% of the total cash trading value in Japan on a 6 months average and 20% of a specific stock trading value on a 6 months average.

Margin Trading

Margin trading is prohibited under CGSFIBO IV-4-2-1(ii)Ac.

Best Execution Policy

Under FIEA Art. 40-2(1), securities companies are obligated to execute their client’s order at best condition.