The Financial Services Agency (FSA) announced today that as of 31 October 2012, Chi-X Japan Limited, a wholly owned subsidiary of alternative trading venue operator Chi-X Global Holdings LLC, will be designated as a proprietary trading system (PTS) on which transactions are exempt from the Take-Over-Bid (TOB) rule of the Financial Instruments and Exchange Act.
The TOB rule requires investors who approach a five percent stake in a company's outstanding shares to launch a tender offer if they are trading off exchange, causing many participants to have concern for inadvertently breaching the rule when trading on a PTS. The exemption will allow investors to trade on Chi-X Japan without concern for breaching the TOB rule.
"Chi-X has long advocated for harmonized rules across venues that support fair and equal access for all investors, and today's announcement is a significant step in the right direction," said Yasuo Hamakake, CEO, Chi-X Japan. "We have received an overwhelmingly positive response from new buy-side and retail participants, as well as from our existing trading participants, who recognize the benefits of trading on our venue."
Hamakake continued: "We remain committed to working with the trading community and providing healthy competition and open discussion to drive positive and informed policy-making change for the market overall."