Here is an article about the news from Japan Securities Finance Co., Ltd. (JSF) regarding the temporary measure on the maximum lending rate for stock loan applications:
Temporary Measure on Maximum Lending Rate for Stock Loan Applications Lifted for Certain Securities
Tokyo, Japan – August 12, 2025 – Japan Securities Finance Co., Ltd. (JSF) announced today the lifting of a temporary measure that had been in place concerning the maximum lending rate for stock loan applications, specifically for certain individual securities. This decision, effective from August 12, 2025, marks a significant adjustment in the operational framework for stock borrowing activities facilitated through JSF.
The temporary measure, which had established a cap on the lending rate charged for stock loans, was initially implemented to address specific market conditions that may have led to an unusual concentration of borrowing demand for particular stocks. Such measures are typically put in place to ensure fair and orderly market functioning and to prevent excessive lending fees that could disrupt the smooth operation of the securities lending market.
With the lifting of this measure, JSF will revert to its standard operational procedures for determining lending rates for eligible securities. This implies that the lending rate for stock loans will once again be determined based on the prevailing market supply and demand dynamics, as well as other relevant factors, without the previously imposed upper limit for the specified stocks.
This announcement is particularly relevant for market participants engaged in stock lending and borrowing, including institutional investors, securities firms, and other financial entities that utilize JSF’s services. The removal of the temporary rate cap could lead to adjustments in the cost of borrowing for affected securities, potentially influencing trading strategies and the overall availability of borrowed stock in the market.
JSF, as a key player in the Japanese securities market, plays a crucial role in facilitating efficient market operations, including the lending and borrowing of securities. The company’s continuous review and adjustment of its operational policies, such as the temporary measures on lending rates, are aimed at maintaining market stability and fostering a conducive environment for all participants.
Investors and market professionals are advised to stay informed about any further updates or specific details regarding the affected securities and the revised lending rate structures. This development underscores the dynamic nature of the securities lending market and the importance of monitoring policy adjustments made by key financial infrastructure providers like Japan Securities Finance Co., Ltd.
貸借取引の品貸し申込みにおける品貸料の最高料率に係る臨時措置の解除について（8/12） – 銘柄別制限措置
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日本証券金融 published ‘貸借取引の品貸し申込みにおける品貸料の最高料率に係る臨時措置の解除について（8/12） – 銘柄別制限措置’ at 2025-08-12 07:14. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.