The Japan Securities Dealers Association (JSDA) plans to set voluntary rules for proprietary trading systems (PTS) operated by brokerage houses.
The abolition of the Concentration Rules in 1998, which limited trade activities to the major domestic stock exchanges, facilitated the introduction of auction style PTSs by brokerage houses in 2005.
“JSDA will establish the new rules with respect to the suspension of trading and other actions necessary when critical information such as news of mergers, reports of window dressing settlements are released or when JSDA decides to suspend trades at its own discretion,” says a spokesman for Mizuho Corporate Bank.