Securities Finance Company of Japan Implements Short-Selling Restrictions on Specific Stocks as of August 13, 2025
Tokyo, Japan – August 13, 2025 – The Securities Finance Company of Japan (SFC) today announced the implementation of targeted restrictions on short-selling activities for a select group of stocks. These measures, effective from the opening of trading on August 13, 2025, are designed to address specific market conditions and ensure fair and orderly trading.
The announcement, published at 07:22 JST, details the individual securities that will be subject to these new regulations. While the specific criteria for inclusion are not fully elaborated in the public release, such measures are typically enacted in response to heightened volatility, significant price movements, or concerns about the potential for market manipulation in particular stocks.
Short-selling involves borrowing shares and selling them with the expectation of buying them back later at a lower price to profit from the difference. While a legitimate investment strategy, excessive or concentrated short-selling in certain circumstances can contribute to rapid price declines and exacerbate market volatility.
The SFC, as a key player in the Japanese financial market, has the mandate to maintain market stability and integrity. The implementation of these “銘柄別制限措置” (meigara betsu seigen sochi), which translates to “stock-specific restriction measures,” signifies the SFC’s proactive approach to managing potential risks within the securities lending market.
Investors and market participants are advised to carefully review the SFC’s official announcement for the precise list of affected securities and the nature of the restrictions. These measures may include limitations on the volume of shares that can be borrowed for short sales or other specific operational adjustments.
The SFC’s communication emphasizes that these are targeted interventions, aimed at specific issues rather than a broad-based market control. By focusing on individual stocks exhibiting particular characteristics, the SFC seeks to mitigate adverse effects while allowing normal trading to continue for the majority of the market.
This action underscores the SFC’s commitment to safeguarding the health of the Japanese capital markets and ensuring a stable environment for all participants. Investors should remain diligent in their market analysis and be aware of any regulatory updates that may impact their trading strategies.
貸借取引の銘柄別制限措置の実施等について（8/13） – 銘柄別制限措置
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日本証券金融 published ‘貸借取引の銘柄別制限措置の実施等について（8/13） – 銘柄別制限措置’ at 2025-08-13 07:22. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.