The Japanese Exchange Group (JPX) has established an independent directors’ investigation committee to support the Securities and Exchange Surveillance Commission’s (SESC) ongoing investigation into insider trading at the Tokyo Stock Exchange.
The SESC alleges that an exchange employee violated insider trading regulations, with its investigation confirmed by JPX on 23 October.
Acting as an independent body, the committee is investigating the causes of the incident through the evaluation of staff education and training programmes, operational processes and information management systems connected to the event. It is also identifying potential prevention measures that could be put in place, “such as ensuring thorough awareness of compliance with laws and regulations among all officers and employees and strengthening internal control systems”.
Members of the committee are independent directors of JPX and members of its risk policy or audit committees. Chaired by Takeno Yasuzo, Kama Kazuaki, Sumida Sayaka and Matsumoto Mitsuhiro make up the rest of the group. Their investigation report will be “promptly disclosed” once completed, JPX stated.
In its statement, JPX stated that “[the group] is and will continue making every effort to cooperate with all aspects of the SESC’s investigation. We offer our sincere apologies for the inconvenience and concern this is causing among our listed companies and other related parties.”
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