Tokyo Stock Exchange needs rules on insider trading, CEO says

30 November 2010

New rules to reduce the chances of insider trading taking place need to be introduced to the Tokyo Stock Exchange (TSE), the bourse’s chief executive officer (CEO) has said.

Atsushi Saito said that legislation similar to that adopted by the US needs to be introduced to prevent information on certain firms and stocks being released ahead of trades.

According to the CEO, who was speaking at the Europlace Financial Forum, the TSE has received a number of complaints from European investors about the lack of rules surrounding the use of non-public information.

Mr Saito, who was quoted by Reuters, said: “In 1999 ... [the US] ... had the same type of problem. We are ... similar to the US so it could be rather easy for us to learn from them.”

An investigation into possible insider trading was launched after complaints were lodged regarding suspicious trading activity before new share announcements were made.

Tokyo Electric Power and Inpex Corporation are among the firms whose stock is involved.

Financial regulators in Japan are now thought to be analysing the results of an investigation into the allegations.

By Jim Ottewill

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