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Listing Eligibility | Japan Exchange Group Operations of the Listing Examination Department Listing Examination Process A large number of unspecified investors will look to invest in companies once their stocks have been listed on the financial instruments exchange. As such, there must be systems in place to ensure that investors can have confidence in these newly listed companies. The Listing Examination Department of Japan Exchange Regulation (JPX-R) examines the eligibility of listing applicants based on certain quality standards (listing examination criteria) aiming to ensure confidence from investors. There are two types of listing examination criteria: initial requirements, and the contents of the listing examination. In addition to new listings on the Prime, Standard, and Growth Markets, JPX-R conducts segment transfer examinations on stocks, etc. It also conducts listing examinations on other financial instruments, including REITs and ETFs. For more information on the listing examination criteria for each market segment, ...

Aiming for Better Equity Financing | Japan Exchange Group Aiming for Better Equity Financing The Principles for Equity Financing Equity financing Equity financing is an important managerial option that involves issuing new shares to increase shareholders’ equity in the company and obtain funding to be channeled into growing the business and enhancing corporate value1. In Japan today, the most common methods of equity financing are public offerings, third party allotments, and rights offerings. A public offering is a way to offer equities, such as new shares, to the general public through underwriting broker-dealers, and a third-party allotment is a way to issue equities directly to designated investors or shareholders. In a rights offering, a company makes a gratis allotment of warrants to existing shareholders, and the warrants are listed on a stock exchange. Issues to be addressed In recent years, some cases of equity financing that could potentially undermine ...

Principles for Preventing Corporate Scandals | Japan Exchange Group Background Principles for Preventing Corporate Scandals In recent years, a large number of corporate scandals have emerged at listed companies and received frequent media coverage. These scandals have spread across industries, regardless of company size. Some have taken place in recent years, while others had long gone undetected before coming to light. Whichever the case, these scandals not only have a severely negative impact on society but also hurt the reputation of the company, inflict adverse effects on its business performance and stock price, and thereby damage its corporate value. Going beyond the consequences for individual companies, a capital market where high-profile scandals at listed companies are a common occurrence would lose its credibility due to perceptions of insufficient corporate governance. In February 2016, Japan Exchange Regulation (JPX-R) published the "Principles for Responding to Corporate Scandals." The document provides guidelines ...

Principles for Responding to Corporate Scandals | Japan Exchange Group Background Principles for Responding to Corporate Scandals Listed companies have relationships with a wide variety of stakeholders, including shareholders, customers, business partners, employees, and local communities. When a scandal occurs (a serious legal violation or other improper/inappropriate conduct, etc.) at a listed company, therefore, the effects ripple in many directions. Not only does the company suffer damage to its corporate value, but the impact may also affect the credibility of the entire capital market. Recognizing its position as a public company, every listed company thus needs to respond resolutely to any scandal or signs of a potential problem concerning its operations (or those of its group companies) by quickly conducting a thorough factual investigation into the matter, clearly identifying the root causes, and using its findings to implement measures for preventing the problem from recurring. Listed companies are under enormous ...

Report Matters Affecting the Eligibility of Listed Companies | Japan Exchange Group This page is for the public, including a wide range of related parties, to provide us with information regarding the following matters concerning listed companies. Please do not submit requests to mediate individual issues or conduct investigations. Appropriateness of disclosures (timely disclosure, etc.) made by listed companies (e.g., whether the timing of disclosure is appropriate, or if the disclosure contains falsehoods, lacks information deemed important for investment decisions, or is misleading in terms of investment decisions.) Whether there are any problems with the status of compliance with the "Corporate Code of Conduct," which sets out the minimum requirements to be observed as a listed company (e.g., whether there are any problems with the development, establishment, and operation of the internal control system required of listed companies to comply with laws and regulations) Corporate Code of Conduct Possible ...

Report Matters Affecting the Eligibility of Listing Applicants | Japan Exchange Group This page is for executives, employees, and other related parties of companies applying for listing on Tokyo Stock Exchange to provide us with information regarding falsified financial statements and other matters that will materially affect an applicant’s eligibility for listing. The information provided will be used for our listing examination operations. Please note that the information provided will be shared with the lead managing underwriter to the extent deemed necessary for the listing examination and relevant parties may be contacted for confirmation. Although we take utmost care to preserve the anonymity of the person(s) who provided the information, please understand that there may be cases where the initial listing applicant may be able to infer that the investigation was initiated as a result of the information provided. File a Tip or Complaint - Please note that due to ...

Report Non-Compliance with Laws and Regulations by Trading Participants | Japan Exchange Group This page is for the public, including a wide range of interested parties and general investors, to provide us with information regarding general compliance issues, such as whether a trading participant's business structures, entrustment and execution activities, or internal control systems may be in violation of laws or regulations, or whether there are any problems with such systems. Information provided will be used in our inspection and audit operations. File a Tip or Complaint - Please note that due to legal confidentiality obligations, we are unable to respond to inquiries regarding the existence, schedule, progress, or results of any inspections or audits conducted based on the information provided. - Please note that we do not provide consultation, mediation, or other services related to securities trading, nor do we respond to requests to solve individual issues. - We only accept ...

Report Unfair Trading in JPX Markets | Japan Exchange Group This page is for the public to provide us with information on likely unfair trading that involves issues listed on the markets of Tokyo Stock Exchange, Osaka Exchange, and Tokyo Commodity Exchange, such as “Company A‘s stock price is moving in an unnatural manner; I heard that Mr. B is involved...” or “Mr. D of Company C seems to have traded on inside information...” If you have information about an unfair trade, please submit it here. Your information will be used to help us in our market surveillance activities, such as in reviewing trading activity. Insider trading Market manipulation Spreading rumors Improper large acquisitions of shares or violation of the obligation to submit large shareholding reports (failure to submit reports, false statements, etc.) Other acts that violate laws and regulations File a Tip or Complaint (Reference) About Unfair Trading (Market ...

Trading Participant Internal Management System Checkpoints | Japan Exchange Group Trading Participant Internal Management System Checkpoints Japan Exchange Regulation (JPX-R), based on experience accumulated in its inspections, has developed a set of points regarding key inspection items. These points address the internal management of trading participants (broker-dealers qualified to access directly the trading platforms of Tokyo Stock Exchange or Osaka Exchange) which are the focus of inspections, and are cited when determining actions against violation of laws and regulations. It is our hope that trading participants will find them useful in their efforts to improve their internal management systems. (Note) ･These checkpoints are aimed mainly at General Trading Participants. For details, please refer to items relevant to the businesses of each trading participant. Trading at Tokyo Commodity Exchange (TOCOM) will be examined at the same points of inspection. Please refer to these points by substituting terms as needed as ...

JPX-R Inspection Plan | Japan Exchange Group Basic policy Priority Inspection Items, etc. Inspection Plan for FY2025 JPX-R Inspection Plan 　 TOCOM Audit Plan The Trading Participants Examination and Inspection Department publicizes an inspection plan every fiscal year. The plan includes the basic policies and priorities for inspections. To fulfill its role in maintaining market fairness and reliability, Japan Exchange Regulation (JPX-R) conducts inspections with the following items as its basic policy. Conducting inspections with expertise as an organization of the exchange group Monitoring trading participant's business operations and financial situation (1) Targeted monitoring (2) Regular communications Strengthening inspection based on a risk-based approach (1) Selecting trading participants for inspection based on risks (2) Conducting flexible inspections based on the severity of risk Strengthening internal management systems of trading participants Based on the market environment, the following topics have been identified for priority inspection for FY2025: Trading ...