Supervisory Body

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

Name of Clearing & Settlement Organization

Japan Securities Clearing Corp. (JSCC)

Settlement Cycle

T + 3 (Cash Trading)

T + 1 (Payment/receipt of derivatives premium and mark-to-market margins)

 

Name of Central Securities Depository

Japan Securities Depository Center (JASDEC)
 

Commissions on Transactions levied by Exchange

 

Monthly fees below only apply to trading participants.

(1) Basic Fees

General Trading Participant ¥900,000

Government Bond Futures, etc. Trading Participant ¥200,000

Index Futures, etc. Trading Participant ¥300,000

Securities Options Trading Participant ¥0

 

(2) Access fees

<Stocks, etc.>

a. Auction trading

Number of orders                                            Amount of access fee

100,000 or less                                                JPY 400,000

More than 100,000 but 200,000 or less              JPY 600,000

More than 200,000 but 300,000 or less              JPY 900,000

More than 300,000 but 500,000 or less              JPY 1.5 million

More than 500,000 but 1.00 million or less         JPY 2.5 million

More than 1.0 million but 2.0 million or less       JPY 4.0 million

More than 2.0 million but 3.0 million or less       JPY 5.2 million

More than 3.0 million but 4.0 million or less       JPY 6.0 million

More than 4.0 million but 5.0 million or less       JPY 6.6 million

More than 5.0 million but 10.0 million or less     JPY 7.1 million

More than 10.0 million                                      JPY 7.6 million plus JPY 500,000

                                 per additional 5 million orders

 

b. Off-auction trading (single-issue trading and basket trading)

Number of orders                                            Amount of access fee

2,000 or less                                                    JPY 0

More than 2,000 but 3,000 or less                     JPY 100,000

More than 3,000 but 5,000 or less                     JPY 200,000

More than 5,000 but 10,000 or less                   JPY 300,000

More than 10,000 but 20,000 or less                  JPY 400,000

More than 20,000 but 30,000 or less                  JPY 500,000

More than 30,000 but 50,000 or less                  JPY 600,000

More than 50,000 but 100,000 or less                JPY 900,000

More than 100,000 but 200,000 or less              JPY 1.2 million

More than 200,000 but 300,000 or less              JPY 1.5 million

More than 300,000 but 500,000 or less              JPY 2.0 million

More than 500,000 but 1.0 million or less           JPY 2.5 million

More than 1.0 million                                        JPY 2.5 million plus JPY 300,000

                                 per additional 500,000 orders

 

<Government bond futures> (number of orders: α)

α≦1,000: ¥0

1,000 ＜α: ¥100,000

<Index futures>

α≦1,000: ¥0

1,000 ＜α: ¥100,000

 

(3)  Trading fees

<Stocks, etc.>

1. Out of the total amount comprising the monthly value of sales and purchases within the markets of auction trading and closing price trading

MTV*1 ≤ ¥20 billion: 0

¥20 billion < MTV ≤ ¥200 billion: Standard rate*2 x 0.9

¥200 billion < MTV ≤ ¥1 trillion: Standard rate x 1.0

¥1 trillion < MTV ≤ ¥1.5 trillion: Standard rate x 0.8

MTV ≧ ¥1.5 trillion: Standard rate x 0.7

*1 MTV: Monthly trading value

*2 Standard rate is calculated using formula below:

MTV < ¥20 trillion: 0.000029

MTV > ¥20 trillion: {¥20 trillion x 0.000029 + (MTV – ¥20 trillion) x 0.000020} ÷ MTV"

 

2. 0.06/10,000 of the total amount comprising the value of sales and purchases within the markets of trading other than auction trading and closing price trading

 

<JGB futures>

¥95 per trading unit

 

<Mini JGB futures>

¥20 per trading unit

 

<Index futures>

MTV ≦100,000 units: ¥55 per trading unit

100,000 units < MTV ≤ 300,000 units: ¥35 per trading unit

MTV > 300,000 units: ¥20 per trading unit

 

<Mini index futures>

¥7 per trading unit

 

<Dividend index futures>

MTV ≦5,000 units: ¥40 per trading unit

MTV > 5,000 units: ¥20 per trading unit

 

<Individual options>

¥40 per trading unit

 

<Options on JGB futures>

¥40 per trading unit

 

<Index options>

¥40 per trading unit

 

(4)  Trading system facility usage fees

1. Stock trading

a. System interface virtual servers (for orders)

                        ¥0 for up to 2 servers,

(a) For servers whose maximum order acceptance messages per sec. is 5: ¥4,000

(b) For servers whose maximum order acceptance messages per sec. is 20: ¥12,000

(c) For servers whose maximum order acceptance messages per sec. is 60: ¥30,000

            b. System interface virtual servers (for inquiries)

                        ¥0 for up to 2 servers, and ¥15,000 per additional server

c. System interface virtual servers (for drop copies)

                        ¥30,000 per server

 

2.  Government bond futures trading, index futures trading, individual options trading, government bond futures options trading, index options trading

            Based on type of trading ID and trading participant gateway:

a. Type of trading ID:

(a) Standard Trading ID, Trading ID for Market Maker, Trading ID for Receiving

Market Information, and Trading ID for Administration:

¥0 for up to 4 trading IDs in total and ¥4,000 per additional trading ID

            (b) Trading ID for High Frequency Trading

                 ¥12,000 per trading ID

            b. Type of trading participant gateway

             (a) Shared gateway

             i. Market maker: ¥80,000 per gateway

ii. Other: ¥0 for up to 1 gateway and ¥80,000 per additional gateway

             (b) Dedicated gateway

             i. Market maker: ¥0 for up to 1 gateway and ¥200,000 per additional gateway

             ii. Other: ¥200,000 per gateway

 

3. Stock trading (off-auction trading)

            ¥0 for up to 2 servers and ¥8,000 per server per additional server

 

 Taxes on Dividends, Interests

 

Rates below apply until Dec. 31, 2013.

<Capital Gain>

Individuals:10% (7% income tax, 3% inhabitant tax) tax withheld at source

Corporations: Taxable. Losses are deductible from taxable income.

<Dividend>

Individuals: 10% tax withheld at source (7% income tax, 3% inhabitant tax)

Corporation: 50% of the total amount of dividend received is not taxable.

<Interest>

Individuals: 20% tax withheld at source (15% income tax and 5% inhabitant tax) (separate taxation)

Corporations: Taxable

2011 Share ownership thresholds (%)

5%

5%

If a shareholder's ratio of shareholding in the company exceeds 5%, such shareholder must submit  "Reports of Possession of Large Volume" to Prime Minister within 5 days from the date on which such person 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 prices equal to or 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

<Until April 30, 2012>

- Naked short selling (short selling in which stocks are not borrowed at the time of selling) is prohibited.

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