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A List of Financial Instrument Trading Business (金融商品取引業) under the Japanese Financial Instrument and Exchange Law (金融商品取引法)
- (a) A sale or purchase of "securities" (有価証券), "market derivatives transactions" (市場デリバティブ取引) and "foreign market derivatives transactions" (外国市場デリバティブ取引) (collectively, “Main Business”)
- (b) Intermediating (媒介), brokering (取次ぎ) and acting as an agent (代理) (collectively, “Intermediating”) in respect of Main Business
- (c) Carrying out a transaction through an agent (委託の媒介、取次ぎ又は代理) on an exchange financial instrument market (取引所金融商品市場) in respect of securities, market derivatives transactions or foreign market derivatives etc.
- (d) Carrying out or Intermediating over-the-counter derivatives transactions (店頭デリバティブ取引), excluding "clearance brokering" (清算取次ぎ, see the next item)
- (e) Securities clearance brokerage (有価証券清算取次) i.e. having a transaction clearance firm undertake such transaction for the customer as an agent
- (f) Securities underwriting (引受け), i.e. an undertaking to e.g. an issuer to sell securities in a primary offering, a private placement or a secondary offering, including a "committed underwriting" (買取引受け) and a "standby" underwriting (残額引受け). Only a "Category One Financial Instrument Dealer" registered with the Prime Minister is allowed to carry out a "primary underwriting" (元引受け, i.e. a direct underwriting from the issuer or the offering party described in Art. 21-4 and art. 28-1-3(a) and (b))
- (g) Primary offering (募集) and private placement (私募) of e.g. settlor directed investment trust beneficial interest (委託者指図型投資信託の受益権), mortgage securities (抵当証券), collective investment scheme (集団投資スキーム) and foreign trust beneficial rights and mortgage securities
- (h) Secondary offering of securities (有価証券の売出し) i.e. offer to sell securities already issued
- (i) Handling of primary or secondary offering or private placement
- (j) Proprietary system trading (私設取引システム運営業務) using either an auction method (競売買の方法) or using exchange trading price or dealer association price (for OTC traded securities) or negotiated price
- k) Entering into (a) an investment advisory agreement (投資顧問契約) and providing advice (助言) thereunder, (b) a discretionary investment agreement (投資一任契約) or (c) an engagement agreement (委託契約) with an investment corporation (投資法人) in relation to asset management, investment or derivatives transactions and acting as an agent thereunder
- (l) Investment trust management
- (m) So called "self-management" (自己運用) of trust or collective investment scheme assets
- (n) Custody of cash or securities in connection with securities or derivatives transactions
- (o) Handling of book entry transfer of bonds as set out in Book Entry Transfer of Bond Law (社債等の振替に関する法律)
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Last updated June 2009
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