Percentage Adjustment
Information available from August 2003.
Code Name Reduction date Trade resumption date Reason
Excessive stock
price volatility
Abnormal trade
volume
Shareholding
overconcentration
Second disposition
by Market Surveillance Department
Upon resolution
by the Surveillance Operations Oversight Committee
Five consecutive days Six days
out of ten
Five consecutive days Six days
out of ten
Note:
  • I.The margin purchase ratio will be reduced by 10% and short margin will be raised by 10% under the circumstances listed below. However, the margin purchase ratio will not be reduced by more than 10% and the short margin will not be raised by more than 10% in the case of simultaneous or cross occurrence of two or more circumstances.
     1.Excessive stock price volatility
     2.Abnormal trade volume
     3.Shareholding overconcentration
  • II.For Second disposition by Market Surveillance Department, the margin purchase ratio is reduced by 60% and short margin is raised by 10%. In other words, the margin purchase ratio is reduced to 0% and the short margin is raised to 100%.
  • III.The resolution of percentage will be adjusted according to the Surveillance Operations Oversight Committee of GTSM.
  • IV.If the circumstances under Items 1, 2, and 3 above occur simultaneously, the decrease in margin purchase ratio and the increase in short margin should be determined on a cumulative basis. However, the total percentage of decrease in margin purchase ratio is subject to a limit of 60% (i.e. a margin ratio of 0%), while the total percentage of increase in short margin is not subject to an upper limit.
  • V.Please refer to the Margin Trading Balance at the GTSM for the percentages of margin purchase ratio decrease and the percentages of short margin increase for individual stocks.