FSA updates supervised securities companies to include CITIC Securities

The Financial Services Agency (FSA), via FSA Notice No. 77 dated October 26, 2026, amended the Matter Concerning the Designation of Financial Instruments Business Operators, etc. Supervised by the Main Office (FSA Notice No. 90 of 2007). In the list of Financial Instruments Business Operators, etc., CLSA Securities Ltd. was replaced by CITIC Securities Co., Ltd., and Article 3, which designated Citadel Securities (Hong Kong) Limited as a high-frequency trader, was deleted. The notice was issued in the name of Commissioner of the Financial Services Agency, Yutaka Ito, and was published in the legal notices section of the Official Gazette on the same day.

The legal basis for the amendment is Article 42, Paragraph 2; Article 42-2, Paragraph 2; and Article 43-2-3, Paragraph 2 of the Order for Enforcement of the Financial Instruments and Exchange Act (Cabinet Order No. 321 of 1965). The designation of those supervised by the main office lists the financial instruments business operators, exchange trading permit holders, special business notification filers, and overseas investor special business notification filers directly supervised by the FSA main office, serving as the basis for delineating supervisory divisions from operators supervised by Local Finance Bureaus. This amendment is presented in a table format that moves or deletes target provisions by corresponding the “Before Amendment” column with the “After Amendment” column.

Designation of Securities Firm Changed from CLSA to CITIC in Item 7

In the list of Financial Instruments Business Operators, etc. in Article 1, Item 7 was changed from CLSA Securities Ltd. to CITIC Securities Co., Ltd. The position remains Item 7, and the total number of listed entities remains unchanged at 116 both before and after the amendment.

• After Amendment: Item 7 CITIC Securities Co., Ltd.
• Before Amendment: Item 7 CLSA Securities Ltd.
• No changes to Items 1 through 6, and Items 8 through 116.

Deletion of High-Frequency Trader Designation and Moving of Authority Provisions to Article 3

Article 3 is deleted. The deleted provision stated, “The high-frequency trader designated by the Commissioner of the Financial Services Agency under Article 43-2-3, Paragraph 2 of the Order for Enforcement of the Financial Instruments and Exchange Act shall be Citadel Securities (Hong Kong) Limited,” meaning the clause listing the company as a high-frequency trader supervised by the main office is removed.

• Deleted: Article 3 (High-Frequency Traders)
• Moved up: Former Article 4 (Authority) becomes Article 3, with no changes to the text.
• Table notation: The “After Amendment” column is noted as “Omitted,” and the “Before Amendment” column is noted as “Same as above.”

The notice contains no supplementary provisions or specified effective dates.

Main Office Supervision List Continues to See Frequent Designation Changes

Designations for main office supervision have been revised successively in recent notices.

• Financial Services Agency Notice No. 66 of August 31, 2026: Added Jefferies Japan Ltd. to No. 18 and BBVA Securities Ltd. to No. 19, increasing the total number from 115 to 116.
• Financial Services Agency Notice No. 76 of October 16, 2026: Changed the name of No. 88 from JAFCO Group Co., Ltd. to JAFCO Co., Ltd.

Both are amendments regarding the enumeration of Financial Instruments Business Operators, etc., under Article 1; among the most recent notices, this is the first instance to affect the provisions for High-Frequency Traders under Article 3.

Meaning for Market Participants

The shift in the supervisory category of foreign securities firms will have practical implications for market participants who file notifications for exchange trading permits or special business operations for overseas investors, etc. CITIC Securities (Japan) Co., Ltd. will come under the direct supervision of the Financial Services Agency (FSA) headquarters as an FSA-supervised Financial Instruments Business Operator, while CLSA Securities Ltd. will be removed from the list. Due to the deletion of the designation provisions for High-Frequency Traders, Citadel Securities (Hong Kong) Limited will no longer be listed as an FSA-supervised High-Frequency Trader; therefore, clients and counterparties whose dealings were based on the company’s trading structure and supervisory positioning will need to verify the situation.

Source: Official Gazette (October 26, 2026) Legal Notices, Financial Services Agency Notice No. 77 “Partial Amendment to the Matter of Designating Financial Instruments Business Operators, etc., Supervised by the FSA Headquarters” / FSA Notice No. 90 of 2007 / Order for Enforcement of the Financial Instruments and Exchange Act (Cabinet Order No. 321 of 1965) Article 42, Paragraph 2, Article 42-2, Paragraph 2, Article 43-2-3, Paragraph 2 / FSA Notice No. 66 (August 31, 2026), FSA Notice No. 76 (October 16, 2026)