Japan’s Regulatory Considerations for Market Liquidity During Trading Hours

2026年5月28日

Japan’s Financial Services Agency (FSA) has published important regulatory considerations and best practices regarding market liquidity during trading hours, as part of its engagement with the International Organization of Securities Commissions (IOSCO). This initiative is crucial for foreign entrepreneurs and investors, as it aims to enhance market efficiency and stability, which directly impacts trading strategies and investment decisions in Japan’s financial markets.

📋 Quick Summary for Foreign Business Owners
Category: Regulatory Update

Background & Context

The Financial Services Agency (FSA) of Japan has recently released a consultation document titled ‘Regulatory Considerations and Good Practices Regarding Changes in Market Liquidity During Trading Hours’ and a report on ‘Extended Trading Hours.’ These documents are part of Japan’s commitment to align with international standards set by the International Organization of Securities Commissions (IOSCO). The regulatory framework surrounding market liquidity is governed by various laws, including the Financial Instruments and Exchange Act (Kin’yū Shōhin Torihiki-hō) of 2006, which has undergone several amendments to adapt to changing market conditions. The FSA’s latest publications reflect ongoing efforts to improve market resilience and transparency, especially in light of recent global financial trends. The timeline of regulatory changes includes the introduction of new trading mechanisms and guidelines aimed at fostering a more robust trading environment, with a focus on liquidity management during peak trading hours.

How This Affects Your Business in Japan

Item	Cost (JPY)	Cost (USD approx)	Notes
Company Registration	¥150,000	$1,000	Standard registration cost
Notary Fee	¥50,000	$350	For document notarization
Visa Application	¥4,000	$27	Business Manager visa

1. Foreign Residents Already Operating a Business in Japan
For those already engaged in trading activities, it is essential to review the new regulatory considerations and adjust trading strategies accordingly. The FSA recommends that businesses implement robust liquidity management practices to comply with new guidelines. Failure to adapt could result in increased operational risks and potential regulatory scrutiny. Businesses should consult with legal advisors to ensure compliance and may need to submit reports demonstrating adherence to the new practices.

2. Foreign Nationals Planning to Establish a New Company
Entrepreneurs looking to enter the Japanese market should consider these new regulations when developing their business plans. Understanding the market liquidity landscape will be crucial for attracting investors and ensuring smooth operations. It is advisable to engage with local legal experts to navigate these regulations effectively. Additionally, preparing a comprehensive business strategy that incorporates these considerations will be beneficial in securing necessary permits and licenses.

3. Foreign Investors Who Are NOT Residents of Japan
Investors outside Japan should stay informed about these regulatory changes as they may affect investment strategies and market entry decisions. Engaging with local financial advisors or investment firms familiar with Japanese market regulations will be crucial. Investors should also monitor the FSA’s updates and consider the implications of extended trading hours on liquidity and market access. Inaction could lead to missed opportunities or misalignment with market conditions.

Step-by-Step: What You Need to Do

Step 1: Review the FSA’s Consultation Document
Visit the FSA website to access the consultation document on market liquidity.
Office: FSA (English Support: Yes)
Cost: Free (¥0)
Time: 1 hour
Pitfall: Not reviewing the latest updates

Step 2: Consult with a Legal Advisor
Engage a legal expert familiar with Japanese financial regulations to discuss implications for your business.
Office: Legal Firm (English Support: Typically available)
Cost: ¥30,000 (~$200 USD)
Time: 2-3 hours
Pitfall: Choosing an advisor without financial regulation expertise

Step 3: Adjust Trading Strategies
Based on the consultation feedback, modify your trading strategies to align with new liquidity management practices.
Office: Internal/Advisory Team (English Support: Depends)
Cost: Variable
Time: Ongoing
Pitfall: Delaying strategy adjustments

Step 4: Prepare Compliance Reports
If required, prepare reports demonstrating compliance with the new regulations.
Office: Internal/Legal Team (English Support: Typically available)
Cost: Variable
Time: 5-10 hours
Pitfall: Incomplete or incorrect reporting

Step 5: Monitor Regulatory Updates
Regularly check the FSA website for updates on market regulations and practices.
Office: FSA (English Support: Yes)
Cost: Free (¥0)
Time: Ongoing
Pitfall: Missing critical updates

Key Contacts
www.jetro.go.jp/en/
www.moj.go.jp/isa/
www.fsa.go.jp/en/

Expert Analysis: Japan vs. Regional Competitors

Metric	Japan	Singapore	Hong Kong	South Korea
Incorporation Time	14 days	3 days	5 days	7 days
Minimum Capital Requirement	¥1	$1	HK$1	₩100,000
Annual Filing Cost	¥60,000	S$300	HK$105	₩50,000
Corporate Tax Rate	30%	17%	16.5%	22%

What to Expect Next

Looking ahead, the FSA is expected to continue refining its regulatory framework in response to market dynamics and international standards. Stakeholders should watch for further announcements regarding potential amendments to the Financial Instruments and Exchange Act and additional guidelines on trading practices. Key timelines to monitor include quarterly updates from the FSA and any public consultations that may arise as part of ongoing regulatory reviews.