Supervisory Body

Financial Services Agency (FSA) & Securities and Exchanges Surveillance Commission (SESC)

Name of Clearing & Settlement Organization

Cash Products

Japan Securities Clearing Corp. (JSCC)

Derivatives Products

OSE

Settlement Cycle

Cash Products

T + 3

Derivatives Products

T + 1

(T+4 in case of exercise of Security Options)

Name of Central Securities Depository

Japan Securities Depository Center (JASDEC)

Commissions on Transactions levied by Exchange

 

Cash Products

Stocks, ETFs, Venture Funds, REITs, Country Funds and Convertible Bonds:

Trading Value x 0.0021% for trading value of not more than 5 bn. yen; 0.0023% for trading value of more than 5 bn. yen but not more than 50 bn. yen: 0.002% for trading value of more than 50 bn. yen but not more than 250 bn. yen; 0.0015%for trading value of more than 250 bn. yen but not more than 500 bn. yen; or 0.001% for trading value over 500 bn. yen

In case of those listed on JASDAQ:

0 for trading value of not more than 0.5 bn. yen

Trading Value x 0.01728% for trading value of more than 0.5 bn. yen but not more than10 bn. yen; 0.0192% for trading value of more than 10 bn. yen but not over 100 bn. yen; 0.01536% for trading value of more than 100 bn. yen but not over 150 bn. yen; or 0.01344% for trading value over 150 bn. yen

 

Covered Warrants: Trading Value x 0.2%

 

Bonds (excluding CBs), JGB: Trading Volume (per face value of 100 yen) x 0.19%

 

Foreign Bonds: Trading Volume (per yen equivalent of 100 yen) x 0.19%

 

- J-NET Trading

Trading Value x 0.00027% OR fixed-amount fee (100,000 yen/ month)

 

Derivatives Products

Nikkei 225 Futures:

Trading: 70 yen* per contract for proprietary account and 110 yen* per contract for customer account

Clearing: 20 yen per contract (130 yen per contract for Final Settlements)

 

Nikkei 225 mini:

Trading: 7 yen* per contract for proprietary account and 11 yen* per contract for customer account

Clearing: 2 yen per contract (13 yen per contract for Final Settlements)

 

Nikkei 225 Options

Trading: Contract Value x 0.05%* (capped at 350 yen per contract)

Clearing: Contract Value x 0.005%; For Exercise, Amounts Paid/Received x 0.055%

 

RN Prime Futures

Trading: 29 yen per contract

Clearing: 16 yen per contract (45 yen per contract for Final Settlements)

 

Nikkei 300 Futures

Trading: 22 yen per contract

Clearing: 4 yen per contract (26 yen per contract for Final Settlements)

 

Securities Options

Trading: Contract Value x 0.01%

Clearing: Contract Value x 0.005%; For Exercise, Trading Value of Underlying Securities executed by Options Exercise x 0.00015%

 

FX Margin Trading

Trading: 20 yen per trading unit

Clearing: 15 yen per trading unit

 

Taxes on Dividends, Interests

Dividends for listed stocks (for non-residents):

7% income tax withheld at source (reduced rate until Dec. 31, 2013)

* except large shareholders (20% income tax withheld at source)

 

Interests (for non-residents):

15% income tax withheld at source

2011 Share ownership thresholds (%)

5%

 

The shareholding ratio of listed companies exceeds 5%, the shareholder is required to submit to the Prime Minister a report that contains the details relating to the holding ratio of shares etc., relating to the funds for the acquisition and relating to the purposes of its holding etc. (Report of Possession of Large Volume) within five days from the date on which such shareholder has come to be a Large Volume Holder.

 

Short selling (Yes / No)

Yes

Short selling conditions (if any)

- An "uptick rule requirement" which prohibits, in principle, short selling at the same as or prices lower than the latest market price

- Requirements for traders to verify and flag whether or not the transactions in question are short selling; and

- Request the exchanges to make daily announcements on their aggregate price of short selling regarding all securities and aggregate price of short selling by sector.

<Temporary measures until April 30, 2012>

- Naked short selling (short selling in which stocks are not borrowed at the time of selling) is prohibited (effective since October 30, 2008).

- Holders of a short position of a certain level or more (in principle, 0.25 percent or more of outstanding issued stocks) are required to report to exchanges through securities firms. Exchanges are required to publicly disclose such information (effective since November 7, 2008).