Japan Securities Finance Announces Cancellation of Securities Lending Eligibility for Specific Stocks
Tokyo, Japan – September 12, 2025 – Japan Securities Finance Co., Ltd. (JSF) has announced the cancellation of securities lending eligibility for a number of stocks, effective September 12, 2025. This decision, detailed in a notification released today, is part of JSF’s ongoing review process to ensure the smooth functioning and integrity of the securities lending market.
The announcement signifies that these specific securities will no longer be available for lending transactions through JSF’s services. This typically impacts the ability of market participants to borrow these shares for various trading strategies, such as short selling, or to meet settlement obligations.
While the precise reasons for the cancellation of eligibility for each individual stock are not publicly elaborated upon in the general announcement, such decisions by JSF are generally made based on several factors. These can include, but are not limited to:
- Market Liquidity and Trading Volume: Stocks with consistently low trading volumes or diminished market liquidity may be removed from lending programs to avoid potential disruptions or inefficiencies.
- Specific Stock Characteristics: Certain corporate events, such as significant changes in a company’s financial health, restructuring, or changes in its business model, could also lead to a reassessment of lending eligibility.
- Regulatory Considerations: Any changes in regulatory requirements or market practices may necessitate adjustments to the list of eligible securities.
- Operational Considerations: JSF, as a financial institution, also considers operational aspects and the overall balance of its lending portfolio.
This proactive measure by Japan Securities Finance underscores its commitment to maintaining a stable and reliable market for securities lending. By regularly reviewing and adjusting the eligibility of stocks, JSF aims to mitigate potential risks and ensure that the lending market continues to serve its intended purpose efficiently.
Market participants who rely on securities lending for these specific stocks are advised to consult the official notification from Japan Securities Finance for the definitive list of affected securities and to make necessary arrangements in their trading strategies accordingly. JSF remains dedicated to providing comprehensive financial services and fostering a robust securities market in Japan.
貸借取引対象銘柄の選定取消しについて（9/12） – 選定・選定取り消し
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日本証券金融 published ‘貸借取引対象銘柄の選定取消しについて（9/12） – 選定・選定取り消し’ at 2025-09-12 05:53. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.