The TOB rule requires investors who approach a five percent stake in a company’s outstanding shares to launch a tender offer if they are trading off exchange, causing many participants to have concern for inadvertently breaching the rule when trading on a PTS. The exemption will allow investors to trade on Chi-X Japan without concern for breaching the TOB rule.
“Chi-X has long advocated for harmonized rules across venues that support fair and equal access for all investors, and today’s announcement is a significant step in the right direction,” said Yasuo Hamakake, CEO, Chi-X Japan. “We have received an overwhelmingly positive response from new buy-side and retail participants, as well as from our existing trading participants, who recognize the benefits of trading on our venue.”
Hamakake continued: “We remain committed to working with the trading community and providing healthy competition and open discussion to drive positive and informed policy-making change for the market overall.”