TSE Will Eliminate Exception To T+3 Standard Settlement Cycle

TSE is seeking public comments on revising rules and regulations so that all on exchange trades on stock settle on the fourth business day from the trade date (T+3), effective from November 2009. While the standard settlement cycle is T+3,

By None

TSE is seeking public comments on revising rules and regulations so that all on-exchange trades on stock settle on the fourth business day from the trade date (T+3), effective from November 2009. While the standard settlement cycle is T+3, settlement is carried over to T+4 in case the standard settlement date falls on a record date. The new rules will no longer allow such carryovers.

The move of TSE is based in part on a recommendation by the Joint Working Group on Clearing and Settlement of Securities Trading. Established by TSE, Japan Securities Clearing Corporation (JSCC) and Japan Securities Depository Center, Inc. (JASDEC), the working group comprises 14 market participants including BTMU.

TSE also plans to revise rules and regulations to eliminate trading suspension in case of a reverse stock split or change in board lot size due to a stock split (bonus issue), from November 2009 as well.

Please refer to the TSE website for further details of the announcement.

D.C.

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