Are the 1988 Amendments to Japanese Securities Regulation Law Effective Deterrents to Insider Trading?

Tuesday, January 1st, 1991 at 12:00 am by Shen-Shin Lu
Shen-Shin Lu, Are the 1988 Amendments to Japanese Securities Regulation Law Effective Deterrents to Insider Trading?, 1991 Colum. Bus. L. Rev. 179

In a Japan that has become a major economic power, Tokyo has become one of the most important financial centers in the world. The Tokyo Stock Exchange (TSE), now exceeding the New York Stock Exchange, has, since 1987, the highest equity market capitalization and trading volume of any stock exchange on the globe. Thus, Japanese securities regulation, policing the largest market in the world, takes on global importance. This paper will survey the history of both the securities market and securities regulation in Japan. It will then discuss the Japanese Securities and Exchange Law and its most recent amendment, and compare old and new versions of the law. It will conclude that the new amendment will not prevent insider trading in Japan.

Author Information

LL.M. Candidate, Harvard Law School. LL.M., Graduate School of Law, Hitotsubashi University, Tokyo, Japan. A synopsized version of this work first appeared in Standard & Poors' Review of Securities & Commodities Regulation.