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  5. Administrative Restrictions

Restrictions on Trading

TSE puts administrative restrictions on trading and brokerage as part of market administration if an abnormal situation is observed or anticipated.
For example, if whole market heats up abnormally such as prices on lots of issues rise and trading volume swell up drastically for days at a time, investors might be uncomposed and could suffer unexpected amount of loss as a result. When such abnormal overheat is anticipated, TSE puts administrative restrictions on all issues such as reduction of daily price limit range, margin trading restrictions etc.

In addition to the situation mentioned above, when abnormal situation is observed or anticipated on a certain issue, TSE also puts restrictions on the issue such as trading halt, reduction of daily price limit range, prohibition of market orders, prohibition of making purchases on trading participants’ proprietary accounts, requirement of receiving purchase funds or selling stocks from clients before the settlement day, raising the customer margin ratio, requirements of cash collateral etc.