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Japan Bans Naked Shorts

Japan is joining the ranks of countries restricting short sales with a temporary ban on naked short-selling.

The ban is set to take effect on Nov. 4 and will run through March 31, the Japanese Financial Services Agency said.

Like other short-selling bans and restrictions in other jurisdictions, the FSA is also imposing new disclosure requirements. All investors with short positions in excess of 0.25% in a stock have to report their position to brokerage firms.

The moves follow an Oct. 14 rule requiring exchanges to disclose more information about short-selling.


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