Japan Removes 5-Percent Takeover Trigger for PTS Venues

Japan’s financial regulator said it will relax from Oct. 31 a rule on stock trades that alternative venues SBI Japannext and Chi-X Japan Ltd. say stifles competition with the country’s biggest bourses.

Trades on SBI Japannext and Chi-X Japan, the only two venues where the public can buy and sell shares away from a traditional exchange, will be exempt from a rule forcing investors to make a takeover bid if they acquire more than five percent of a company through off-exchange transactions with more than 10 counterparties, the Financial Services Agency announced today. The exemption will allow investors to trade on alternative platforms without fear of accidentally crossing the five-percent threshold, Yasuo Hamakake, chief executive office of Chi-X Japan said today.