RULES AND REGULATIONS

Self-Regulatory System

The Exchange's oversight of listed companies is to track and supervise information disclosure by listed companies to ensure that investors may get reliable information in a timely manner so they can make sound investment decisions.

KBOFX has performed the following specific tasks in encouraging listed companies to uphold their legal and regulatory information disclosure obligations:

  1. Creating legally compliant guidelines for information disclosure;
  2. Executing ongoing and ex-post oversight of disclosure announcements of information;
  3. Dealing responsibly with high-risk businesses;
  4. Taking administrative action to prevent noncompliance.

Significant efforts have been made to facilitate the transformation of supervision over listed companies:

  1. Increasing awareness of the one-stop information disclosure service;
  2. Completely adopting industry-based oversight of disclosure of information;
  3. Encouraging rigorous oversight of information dissemination;
  4. Constantly increasing the degree of transparency in supervision.

Supervision of Members

The Exchange is a membership-based, self-regulatory organization with a legal identity that provides venues and facilities for centralized trading of securities as well as plans and manages that trading. The General Assembly, which consists of all KBOFX members, is the Exchange's highest decision-making body. The Exchange carries out its self-regulatory duties, conducts business in accordance with the law, puts the public interest first, and upholds a fair, orderly, and transparent market.

The Exchange monitors its members' securities trading operations in real-time, paying particular attention to any unusual trading behavior that might have an impact on trade volume or price. The operation of the members' risk management system, trading system, and other pertinent systems in their securities business activities may be observed and inspected by the Exchange as necessary as part of its supervisory duties.

Market Surveillance

The Exchange uses the surveillance system to monitor securities trading in real-time and in-depth to spot any unusual trading activity. If necessary, it takes self-regulatory action, which may include, among other things, issuing verbal or written warnings, demanding the submission of compliance commitments, conducting supervisory interviews, and enforcing disciplinary sanctions, such as restricting trading via certain accounts. Finally, it reports to any relevant parties.

The Exchange is dedicated to promoting cross-market and cross-border regulatory cooperation in order to safeguard against market risks and maintain the values of openness, fairness, and impartiality.

Regulation Framework

Acts and Ordinances are legal instruments that establish fundamental guidelines and standards for the operation of stock exchanges. They also contain rules governing KBOFX's organizational structure and its operations. KBOFX notifications are regularly issued to provide important information to its stakeholders. These notifications mostly deal with new admissions, regulatory issues, revisions to directives, and exchange membership. It is worth noting that all information from prior periods is still available and can be accessed upon request.

Trading Guides

Trading guides are a useful resource for participants to gain a comprehensive understanding of all the trading regulations. They provide valuable assistance in evaluating the rules and guidelines that govern trading activities. They provide information on various trading strategies, risk management techniques, and market analysis methods, helping traders make informed decisions and minimize potential risks. Additionally, trading guides often include tips and tricks from experienced traders, as well as real-life examples to illustrate key concepts. Overall, these resources play a crucial role in empowering traders to develop their skills and succeed in the competitive world of trading.

Revisions

Changes or modifications may lead to the repeal of rules and regulations, allowing users to access the most recent information available. This means that as updates are made, users will have the opportunity to stay informed and comply with the latest guidelines in place. By having access to the updated information, users can ensure that they are following the most current rules and regulations that are in effect.

Rules  

The organizational structure of KBOFX is governed by the rules. These rules include information on the fundamental rules and regulations that apply to the trading and admittance of securities as well as the responsibilities and authority assigned to each regulating body.

The rights and liabilities of KBOFX, its participants, and traders are governed by the KBOFX Rule Guide. It includes a series of regulations and is based on the concepts of the Japanese Act on Financial Market Infrastructures and Market Conduct in Securities and Derivatives Trading:

  • Acceptance of brokerages as Exchange participants;
  • Organization of trading;
  • Trade settlement and clearing on the Exchange;
  • Supervision and enforcement of the Rule Guide.
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