The Latest Changes to the Rules Governing the Green Sheet Market

8 Pages Posted: 7 Feb 2006

See all articles by Sadakazu Osaki

Sadakazu Osaki

Nomura Institute of Capital Markets Research

Abstract

The Japan Securities Dealers Association (JSDA) has reformed Green Sheet, its system for handling trades of unlisted shares [outside of the OTC market]. In step with revisions to the Securities and Exchange Law that extends rules governing listed stocks, including restrictions on unfair trading, to Green Sheet stocks, the JSDA's rules now also require Green Sheet companies to submit timely disclosures. Although these reforms were nominally made to better protect investors who invest in those companies, the author argues that these rules are inappropriate for the Green Sheet market, which should be a forum for freely trading in stocks.

Keywords: Japan Securities Dealers Association, Green Sheet, Securities and Exchange Law, JSDA

JEL Classification: K22, O53

Suggested Citation

Osaki, Sadakazu, The Latest Changes to the Rules Governing the Green Sheet Market. Nomura Capital Market Review, Vol. 8, No. 2, pp. 17-24, Summer 2005. Available at SSRN: https://ssrn.com/abstract=872249

Sadakazu Osaki (Contact Author)

Nomura Institute of Capital Markets Research ( email )

Urbannet Otemachi Building
2-2-2, Otemachi, Chiyoda-ku
Tokyo, 100-8130
Japan

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