Regulatory Trends In Japan On High-Speed Algorithmic Trading

INTRODUCTION

On December 22, 2016, the Financial Services Agency of Japan (the "FSA") published a report summarized by the Working Group on Financial Markets of the Financial System Council, titled "Report of Working Group on Financial Markets – Promotion of Stable Asset Formation by Japanese Citizens and Development of Market / Exchange Systems" (the "Report"), and indicated its policy to introduce a registration system for investors who conduct "high-speed algorithmic trading". The bill for amendment of the Financial Instruments and Exchange Act (the "Act") incorporating such policy is expected to be submitted to the Diet at the current ordinary session, which convened on January 20, 2017.