Japan tightens short selling rules 29 December 2010Tokyo Reporter: Ben Wilkie
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The Financial Services Agency of Japan has said it will prevent investors who short sell newly issued shares from buying the stock after the offer price has been set.
The move is designed to prevent excessive short selling on new issues. The new rule is similar to Regulation M in the US, which prohibits investors from taking short positions after the announcement of an offering and then buying shares in the offering.
The rules could be in place as early as April 2011, said the FSA.
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