Customer Credit Risk and Collateral Shortfall Risk in Margin Trading
First written in FY2016. 3 of 6 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2017: 1 of 7 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The Company seeks to minimize risk by increasing contact with customers, preventing unforeseen situations in which advances cannot be recovered due to collateral shortfalls while ensuring that customers maintain appropriate investment amounts, and conducting daily monitoring by the responsible department.」
The Company continues to increase customer contact and conduct daily monitoring by the responsible department to address the risks of collateral shortfalls and inability to recover funds in margin transactions. - FY2021MitigatedAnnual report
「The Company seeks to minimize risk by increasing contact with customers, preventing unforeseen situations in which advances cannot be recovered due to collateral shortfalls while ensuring that customers maintain appropriate investment amounts, and conducting daily monitoring by the responsible department.」
To address the risks of collateral shortfalls and inability to recover funds in margin transactions, the Company identifies increased customer contact and daily monitoring by the responsible department as measures. - FY2020RestatedAnnual report
「If stock prices fluctuate sharply, the Company may be unable to fully recover advances made to customers, potentially affecting its operating results and financial condition.」
The risk of collateral shortfalls and insufficient recovery during sharp market fluctuations in margin transactions is reiterated. - FY2019RestatedAnnual report
「The Company may require customers to provide additional collateral due to fluctuations in stock prices or other factors. If a customer fails to provide the additional collateral, the Company will liquidate the customer's open positions and collateral in accordance with its rules. If stock prices fluctuate sharply, the Company may be unable to fully recover advances made to customers, potentially affecting its operating results and financial condition.」
The mechanisms for additional collateral and the liquidation of open positions and collateral, and the risk of insufficient recovery during sharp market fluctuations, are reiterated. - FY2018RestatedAnnual report
「The Company may require customers to provide additional collateral due to fluctuations in stock prices or other factors. If a customer fails to provide the additional collateral, the Company will liquidate the customer's open positions and collateral in accordance with its rules. If stock prices fluctuate sharply, the Company may be unable to fully recover advances made to customers, potentially affecting its operating results and financial condition.」
The mechanisms for additional collateral and the liquidation of open positions and collateral in margin transactions, and the risk of insufficient recovery during sharp market fluctuations, are reiterated. - FY2016First statedAnnual report
「If stock prices fluctuate sharply, the Company may be unable to fully recover advances made to customers, potentially affecting its operating results and financial condition.」
While describing mechanisms for requiring additional collateral and liquidating open positions and collateral, the Company identifies insufficient recovery during sharp market fluctuations as a risk.