Tighter Regulations on Foreign Exchange Margin Trading and Related Activities
First written in FY2016. 6 of 9 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2022: 2 of 7 companies on the "Worse" side.
8 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「The Company is registered by the Ministry of Agriculture, Forestry and Fisheries and the Ministry of Economy, Trade and Industry to conduct a commodity futures business, and operates in compliance with the Commodity Futures Act and other laws and regulations. The requirements for cancellation of registration for a commodity futures business are prescribed in Article 236 of the Commodity Futures Act. If any of these requirements apply, administrative action, including cancellation of registration, will be imposed.」
The specific legal framework for regulatory risks, including cancellation of registration for a commodity futures business, continues to be described as in the previous fiscal year. - FY2025WorsenedAnnual report
「The Company is registered by the Ministry of Agriculture, Forestry and Fisheries and the Ministry of Economy, Trade and Industry to conduct a commodity futures business, and operates in compliance with the Commodity Futures Act and other laws and regulations. The requirements for cancellation of registration for a commodity futures business are prescribed in Article 236 of the Commodity Futures Act. If any of these requirements apply, administrative action, including cancellation of registration, will be imposed.」
In addition to the existing regulations on foreign exchange margin trading and other activities, the registration and cancellation-of-registration risks for a commodity futures business under the Commodity Futures Act have been explicitly identified, broadening the scope of regulation. - FY2024RestatedAnnual report
「After taking into account the impact of these regulations on the Group's financial position, operating results and other matters, the Group implements and considers measures every day, including reducing risk exposure and increasing capital. However, if laws and other regulations related to the business are amended and enforced, including through further strengthening of leverage regulations, stricter standards required under stress tests, and the expansion or strengthening of the scope of regulation, or if the Group strengthens regulations through its own measures, this could have a material impact on the Group's financial position, operating results and other matters.」
Continues to identify the risk of strengthened regulations and the Group's daily implementation and consideration of measures to reduce risk exposure and increase capital. - FY2023RestatedAnnual report
「After taking into account the impact of these regulations on the Group's financial position, operating results and other matters, the Group implements and considers measures every day, including reducing risk exposure and increasing capital. However, if laws and other regulations related to the business are amended and enforced, including through further strengthening of leverage regulations, stricter standards required under stress tests, and the expansion or strengthening of the scope of regulation, this could have a material impact on the Group's financial position, operating results and other matters.」
Continues to identify the risk of strengthened regulations, including stress-testing obligations, and the Group's daily implementation and consideration of measures to reduce risk exposure and increase capital. - FY2022RestatedAnnual report
「In addition, from January 2020, under the Cabinet Office Ordinance on Financial Instruments Business, firms have been required to analyze the impact on the soundness of management of losses expected to arise from fluctuations in foreign exchange rates and other factors, and to take measures as necessary to ensure sound management (conduct stress tests).」
Continues to identify the strengthening of regulations, including leverage regulations and stress-testing obligations, and the possibility of an impact on performance. - FY2021RestatedAnnual report
「In addition, from January 2020, under the Cabinet Office Ordinance on Financial Instruments Business, firms have been required to analyze the impact on the soundness of management of losses expected to arise from fluctuations in foreign exchange rates and other factors, and to take measures as necessary to ensure sound management (conduct stress tests).」
Continues to identify the strengthening of regulations, including leverage regulations, binary options rules and stress-testing obligations, and the possibility of an impact on performance as a result. - FY2020WorsenedAnnual report
「In addition, from January 2020, under the Cabinet Office Ordinance on Financial Instruments Business, firms have been required to analyze the impact on the soundness of management of losses expected to arise from fluctuations in foreign exchange rates and other factors, and to take measures as necessary to ensure sound management (conduct stress tests).」
The obligation to conduct stress tests was added from January 2020, making the details of the strengthened regulations more specific. - FY2018RestatedAnnual report
「Regulations governing financial instruments have been strengthened, including a ban on firms conducting transactions without receiving a margin deposit of at least 4% of the notional principal (the leverage regulation).」
Continues to identify leverage regulations, binary options rules, and the potential future expansion and strengthening of regulations as risks. - FY2016First statedAnnual report
「In August 2011, amendments were made to laws and regulations concerning financial instruments, including a partial revision of the Cabinet Office Ordinance on Financial Instruments Business, etc. These amendments prohibited firms from conducting transactions without receiving margin of at least 4% of the notional principal amount, known as the leverage regulation.」
States that the expansion and strengthening of leverage regulations and binary options rules could affect performance.