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TORA Compass Assist with Japan Short Selling Rules

Chris Jenkins, Asia-Pacific Managing Director,TORA

Chris Jenkins, Asia-Pacific Managing Director,TORA

TORA, a leading provider of advanced trading technology and financial services, has announced the introduction of enhanced short sale compliance functionality in TORA Compass™ to help buy-side firms adapt to upcoming revisions to short sale regulations by the Japanese Financial Services Agency. The new rules become effective on November 5.

The revised short sale regulations will ease the uptick rule to only apply to cash products which have declined in price by 10% or more from the previous day. This is referred to as the ‘trigger price’. The uptick rule will no longer be in place unless this trigger is met. The rule will also be expanded to cover PTS (proprietary trading systems) and secondary listing exchanges.

“Buy-side firms placing short sale orders in Japan, on the primary exchange or through a PTS, now have a solution to quickly adapt to JFSA’s regulations, while also executing trades with flexibility and speed. The change to the rules also comes at a time when volumes in Japan have increased, so it is crucial that clients have a real-time solution to navigate a crucial change in the market, which we are delivering through the compliance engine of TORA Compass™,” said Chris Jenkins, Asia-Pacific Managing Director at TORA.

The TORA Compass™ compliance engine will prevent users from breaching the revised uptick rule once the trigger price is hit. The user will also be able to track the trigger price through visual indicators. Additionally, the TORA Compass™ compliance engine has introduced a compliance check feature to assist buy-side firms with the new reporting and disclosure requirements.

The revised short-selling rules apply to all cash products, including stocks, CBs, ETFs, and REITS. TORA Compass™ is the most comprehensive, multi-market, multi-broker, multi-product electronic trading platform focused on Asia, reaching 24 key exchanges across 14 countries in Asia.

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