Using Information on Loans for Margin Transactions

The information we publish includes the "Loans for Margin Transactions Outstanding", which is a total of Applications for Loans for Margin Transactions (hereinafter, Applications ) from Participants of Loans for Margin Transactions (securities companies, etc., hereinafter, Participants) that handle Standardized Margin Transactions, "Premium Charge Rates", which are determined by the JSF Auction (Note1) when there are Stock Over-lent Outstanding, and other information that is representative indicator of the supply-demand balance for stocks.

(Note1)　Securities finance companies procure the shortfall in shares through bidding (JSF Auction) from securities companies and institutional investors. Please refer to here for detailed information about the JSF auction.

Examples of major methods of use

Margin Transactions Outstanding will be closed in the near future and a representative indicator of the supply-demand balance for individual issues. Of the Margin Transactions Outstanding, the "Standardized Margin Transactions Outstanding" is published for all issues at the end of each week by each stock exchange, while the "Loans for Margin Transactions Outstanding" is published for all issues every business day by JSF, so please make use of this up to the minute information to see the trends in Standardized Margin Transactions Outstanding.

An issue with a surging Premium Charge Rate (Gyaku-hibu) is an indicator of the current supply-demand balance for an individual issue because it is a factor that encourages margin sellers to liquidate their positions. Especially when selling on Standardized Margin Transactions, please check Premium Charge rate trends in a timely manner and use it for your investment decisions.

Please also use the status of the Premium Charge Rate (Gyaku-hibu) and the balance or bias in the status of the Fund Loan and/or Stock Loan Outstanding to forecast stock price momentum, etc.

Overview of data

  1. [List of Premium Charge Rates]

    File name: shina.csv
    Data frequency: around 10:40AM [JST] on every business day
    Data format: CSV
    Contents:

    Column Items Content Example
    A Application Date This is the Trade Date. YYYYMMDD
    B Settlement Date The settlement date is two business days counting from the Trade Date. YYYYMMDD
    C Code This is 4-5 digit issue code. 8511
    D Issue name This is the name of the issue (abbreviation). 日証金
    E Market coverage This is the name of the trading market.
    For the TSE, the Premium Charge Rates are determined based on Stock Over-lent Outstanding combined with the PTS market portion. Therefore, the premium charge rate determined by the TSE is also applied to the PTS market portion.
    東証: TSE, 名証: NSE, 福証: FSE, 札証: SSE     		東証
    F Reason for settlement This is the category of the most recent financial closing date.
    決算: closing, 臨時: extraordinary     		決算
    G Settlement, etc. This is the nearest financial closing date. YYYYMMDD
    H Reference Price (JPY) This is the price used as the basis for the calculation of the Premium Charge Rate, etc. 1000
    I Stock Over-lent Outstanding (shares) This is the number of stocks procured by JSF through the JSF Auction.
    If the quantity of Stock Loan Outstanding is greater than the Fund Loan Outstanding, JSF will procure Stock Over-lent Outstanding through the JSF Auction.     		10000
    J Maximum Bidding Rate (JPY) This is the Maximum Bidding Rate at the JSF Auction. JSF Auction bids will generally be accepted in increments of 0.05 yen, with the range of Premium Charges generally ranging from 0.00 yen to the Maximum Bidding Rate.
    The Maximum Bidding Rate is pre-determined based on the investment unit of the relevant issue.     		2.0
    K Premium Charge Rate (JPY) This is the Premium Charge Rate determined by the JSF Auction and is the cost per share borne by all sellers in Standardized Margin Transactions. Also called Gyaku-hibu.
    As the Premium Charge Rate increases, the higher the cost of margin selling, the more likely sellers will be encouraged to unwind their positions.
    In contrast, since the margin buyer receives a Premium Charge Rate, a higher Premium Charge Rate increases the incentive to buy on margin, which is expected to improve margin initiatives. In this way, Standardized Margin Transactions function as a self-regulating mechanism for margin transactions outstanding by transferring Premium Charges from all margin sellers to all margin buyers.     		0.05
    L Number of Premium Charge Days The number of days for borrowing stock at JSF Auction.
    Under normal circumstances, it will be one day, but if a holiday or other event falls in between, it will be multiple days.     		1
    M Previous-day Premium Charge Rate (JPY) This is the previous day's Premium Charge Rate. 0.10
    N Remarks "満額" refers to issues that are no longer required to be tendered due to the acceptance of an Additional Application, and no Premium Charges will be incurred. 満額
    O Regulations JSF may implement measures to restrict new Stock Loan Applications, etc., in consideration of the status of procurement of stocks in the JSF Auction.
    注意: Notice for Precaution,
    停止: Suspension of Stock Loan Applications     		注意
    P Bid to Cover Ratio

    This displays the bid to cover ratio (total number of shares bid in the JSF Auction / Stock Over-lent Outstanding) in the result of the Applications according to rank. It is also one of the indicators that shows the degree of tightness in the current stock procurement situation of each issue at JSF.

    Rank Bid to Cover Ratio
    A 1.0 or more, less than 1.2
    B 1.2 or more, less than 1.7
    C 1.7 or more, less than 2.5
    D 2.5 or more, less than 4.0
    E 4.0 or more, less than 6.0
    F 6.0 or more
    		A
  2. [List of Fund Loan and Stock Loan Outstanding by issue]

    File name: zandaka.csv
    Data frequency: around 11:30AM [JST] on every business day
    Data format: CSV
    Contents:

    Column Items Content Example
    A Application Date This is the trade date. YYYY/MM/DD
    B Settlement Date The settlement date is two business days counting from the Trade Date. YYYY/MM/DD
    C Code This is 4-5 digit issue code. 8511
    D Issue name This is the name of the issue (abbreviation). 日証金
    E Market coverage This is the name of the trading market.
    東証およびPTS: TSE and PTS, 名証: NSE, 福証: FSE, 札証: SSE     		東証およびPTS
    F Listing category This column will always be blank.
    G Preliminary data / Final data JSF receives Additional Applications between 8:30AM and 10:00AM on each business day, within the range of Stock Over-lent Outstanding (including cancellation of the previous day's Applications, etc.) in order to reduce excess shares or eliminate over-lent conditions for issues with Stock Over-lent Outstanding in Applications of the previous day.
    Around 11:00AM JSF publishes the Fund Loan and Stock Loan Outstanding by issue, which includes Additional Applications. It is called "Final data".
    Incidentally, after 6:30PM of the Application date, JSF publishes the Fund Loan and Stock Loan Outstanding at that point in time as the "Preliminary data", mainly for Participants and Auction Participants.
    確報: Final data　速報: Preliminary data     		確報
    H/O Fund loaned (shares/JPY)

    Number of shares for which Fund Loan Applications were made on the Application Date or the amount obtained by multiplying the number of shares by the Reference Price.
    (Example) The following is an image of the logic used to calculate the figures of shares.

    Fund Loan Outstanding Previous-day Fund Loan Outstanding Fund loaned
    Participant A 0 500 500
    Participant B 1,000 1,000 0
    Total 1,000 1,500 500
    		500
    I/P Fund returned (shares/JPY)

    Number of shares returned for Fund Loan Applications that have been made up to the previous day or the amount obtained by multiplying the number of shares by the Reference Price.
    (Example) The following is an image of the logic used to calculate the figures of shares.

    Fund Loan Outstanding Previous-day Fund Loan Outstanding Fund returned
    Participant C 2,000 1,000 1,000
    Participant D 1,000 1,000 0
    Total 3,000 2,000 1,000
    		1000
    J/Q Fund Loan Outstanding (shares/JPY) Total Fund Loan Applications by Participants.
    (Example) The following is an image of the logic used to calculate the figures of shares.
    Fund Loan Outstanding is the total amount of the above Participants A-D.     		3500
    K/R Stocks loaned (shares/JPY)

    Number of shares newly applied for Stock Loan Applications on the Application Date or the amount obtained by multiplying the number of shares by the Reference Price.
    (Example) The following is an image of the logic used to calculate the figures of shares.

    Stock Loan Outstanding Previous-day Stock Loan Outstanding Stock loaned
    Participant A 0 1,000 1,000
    Participant B 1,000 1,000 0
    Total 1,000 2,000 1,000
    		1000
    L/S Stocks returned (shares/JPY)

    Number of shares returned for Stock Loan Applications that have been made up to the previous day or the amount obtained by multiplying the number of shares by the Reference Price.
    (Example) The following is an image of the logic used to calculate the figures of shares.

    Stock Loan Outstanding Previous-day Stock Loan Outstandin Stock returned
    Participant C 2,000 1,000 1,000
    Participant D 1,000 1,000 0
    Total 3,000 2,000 1,000
    		1000
    M/T Stock Loan Outstanding (shares/JPY) Total Stock Loan Applications by Participants.
    (Example) The following is an image of the logic used to calculate the figures of shares.
    Stock Loan Outstanding is the total amount of the above Participants A-D.     		4000
    N/U Net balance (shares/JPY) Fund Loan Outstanding - Stock Loan Outstanding = net balance, and a negative net balance is called "Stock Over-lent" and is subject to the JSF Auction.
    (Example) The following is an image of the logic used to calculate the figures.
    3,500 (Fund Loan Outstanding) -4,000 (Stock Loan Outstanding) = -500     		-500
    V Standardized Margin Buying Outstanding JSF does not have a license for this data, so this will always be blank.
    To obtain these figures, each stock exchange and PTS operator publishes the Margin Transactions Outstanding by issue at the end of the week.
    W Standardized Margin Selling Outstanding 〃
    X Reduction adjustment in Fund Loan Outstanding due to Rights Processing (JPY) This is the amount of reduction of Fund Loan Outstanding due to Rights Processing.
    In cases such as new stocks are allocated at a stock split in a ratio other than integer multiple, or subscription warrants are allocated to the Issues Eligible for Standardized Margin Transactions, securities finance companies handle the rights by Subscription of Rights and Bidding for Rights.
    Then, the trading price will be reduced from the contracted price for both margin buyer and seller, corresponding to the Rights Processing Value obtained by Bidding for Rights. This is called "Reduction adjustment in due to Rights Processing".     		100000
    Y Reduction adjustment in Stock Loan Outstanding due to Rights Processing (JPY) This is the amount of reduction of Stock Loan Outstanding due to Rights Processing. 100000
    Z Total increase amount in Fund Loan Outstanding due to mark-to-market in Loans for Margin Transactions (JPY)

    This is the sum of increase amount in Fund Loan Outstanding due to mark-to-market conducted between the securities companies and JSF.
    The amount of Fund/Stock Loan Outstanding on a certain Application Date is obtained by multiplying the number of shares of Fund/Stock Loan Outstanding by the Reference Price on the Application Date, so it changes due to daily fluctuation of the Reference Price. Therefore, the increase or decrease in the Fund/Stock Loan Outstanding due to the fluctuation of the Reference Price (excluding the portion of Rights Processing Value) is settled daily as follows between JSF and securities companies. This is called "mark-to-market in Loans for Margin Transactions (MtM in LMT)".

    As a result of mark-to-market, For Fund Loan User For Stock Loan User
    When Reference Prices increase, JSF will provide additional fund loans to them corresponding to the increase in the Reference Price. JSF will request them to provide additional collateral (cash collateral for loaned securities) corresponding to the increase in the Reference Price.
    When Reference Prices decrease, JSF will request them to repay a portion of the Fund Loan corresponding to the decrease in the Reference Price. JSF will return the excess collateral (cash collateral for loaned securities) to them corresponding to the decrease in the Reference Price.

    (Example) The following is an image of the logic used to calculate the figures.

    Reference Price Previous-day Reference Price Fund Loan Outstanding Previous-day MtM in LMT
    Stock A 500 510 4,000 40,000
    		40000
    AA Total decrease amount in Fund Loan Outstanding due to mark-to-market in Loans for Margin Transactions (JPY)

    This is the sum of decrease amount in Fund Loan Outstanding due to mark-to-market conducted between the securities companies and JSF.
    (Example) The following is an image of the logic used to calculate the figures.

    Reference Price Previous-day Reference Price Fund Loan Outstanding Previous-day MtM in LMT
    Stock B 200 180 1,000 20,000
    		20000
    AB Total decrease amount in Stock Loan Outstanding due to mark-to-market in Loans for Margin Transactions (JPY)

    This is the sum of decrease amount in Stock Loan Outstanding due to mark-to-market conducted between the securities companies and JSF.
    (Example) The following is an image of the logic used to calculate the figures.

    Reference Price Previous-day Reference Price Stock Loan Outstanding Previous-day MtM in LMT
    Stock B 200 180 500 10,000
    		10000
    AC Total increase amount in Stock Loan Outstanding due to mark-to-market in Loans for Margin Transactions (JPY)

    This is the sum of increase amount in Stock Loan Outstanding due to mark-to-market conducted between the securities companies and JSF.
    (Example) The following is an image of the logic used to calculate the figures.

    Reference Price Previous-day Reference Price Stock Loan Outstanding Previous-day MtM in LMT
    Stock A 500 510 4,000 40,000
    		40000
    AD Total Turnover days

    The calculation formula is as follows:
    Total Turnover days = (the average Fund Loan Outstanding over the last 5 business days × 2 + the average Stock Loan Outstanding over the last 5 business days × 2) /（the average Fund loaned over the last 5 business days + the average Fund returned over the last 5 business days + the average Stocks loaned over the last 5 business days + the average Stocks returned over the last 5 business days）
    (Example) The following is an image of the logic used to calculate the figures.

    Stock A Loaned（average of 5 business days） Returned（average of 5 business days） Outstanding（average of 5 business days） Total Turnover days
    Fund Loan 500 1,000 3,500 4.3
    Stock Loan 1,000 1,000 4,000
    		4.3
    AE Turnover days of Fund loaned

    The calculation formula is as follows:
    Turnover days of Fund loaned = the average Fund Loan Outstanding over the last 5 business days / the average Fund loaned over the last 5 business days
    (Example) The following is an image of the logic used to calculate the figures.

    Fund loaned（average of 5 business days） Fund Loan Outstanding（average of 5 business days） Turnover days of Fund loaned
    Stock A 500 3,500 7
    		7
    AF Turnover days of Fund returned

    The calculation formula is as follows:
    Turnover days of Fund returned = the average Fund Loan Outstanding over the last 5 business days / the average Fund returned over the last 5 business days
    (Example) The following is an image of the logic used to calculate the figures.

    Fund returned（average of 5 business days） Fund Loan Outstanding（average of 5 business days） Turnover days of Fund returned
    Stock A 1,000 3,500 3.5
    		3.5
    AG Turnover days of Fund Loan Outstanding

    The calculation formula is as follows:
    Turnover days of Fund Loan Outstanding = (the average Fund Loan Outstanding over the last 5 business days × 2) /（the average Fund loaned over the last 5 business days + the average Fund returned over the last 5 business days）
    (Example) The following is an image of the logic used to calculate the figures.

    Fund loaned（average of 5 business days） Fund returned（average of 5 business days） Fund Loan Outstanding（average of 5 business days） Turnover days of Fund Loan Outstanding
    Stock A 500 1,000 3,500 4.7
    		4.7
    AH Turnover days of Stocks loaned

    The calculation formula is as follows:
    Turnover days of Stocks loaned = the average Stock Loan Outstanding over the last 5 business days / the average Stocks loaned over the last 5 business days
    (Example) The following is an image of the logic used to calculate the figures.

    Stocks loaned（average of 5 business days） Stock Loan Outstanding（average of 5 business days） Turnover days of Stocks loaned
    Stock A 1,000 4,000 4
    		4
    AI Turnover days of Stocks returned

    The calculation formula is as follows:
    Turnover days of Stocks returned = the average Stock Loan Outstanding over the last 5 business days / the average Stocks returned over the last 5 business days
    (Example) The following is an image of the logic used to calculate the figures.

    Stocks returned（average of 5 business days） Stock Loan Outstanding（average of 5 business days） Turnover days of Stocks returned
    Stock A 1,000 4,000 4
    		4
    AJ Turnover days of Stock Loan Outstanding

    The calculation formula is as follows:
    Turnover days of Stock Loan Outstanding = (the average Stock Loan Outstanding over the last 5 business days × 2) /（the average Stocks loaned over the last 5 business days + the average Stocks returned over the last 5 business days）
    (Example) The following is an image of the logic used to calculate the figures.

    Stocks loaned（average of 5 business days） Stocks returned（average of 5 business days） Stock Loan Outstanding（average of 5 business days） Turnover days of Stock Loan Outstanding
    Stock A 1,000 1,000 4,000 4
    		4
  3. [List of the Issues Eligible for Loans for Margin Transactions]

    File name: meigara.csv
    Data frequency: around 9:00AM [JST] on every business day
    Data format: CSV
    Contents:

    Column Items Content Example
    A Application Date This is the trade date. YYYYMMDD
    B Code This is 4-5 digit issue code. 8511
    C Issue name This is the name of the issue (abbreviation). 日証金
    D Availability (TSE) Issues Eligible for Fund Loan and Stock Loan: 1
    Issues Eligible Only for Fund Loan: 2,
    Not-eligible Issues: 0
    For Issues Eligible for Fund Loan and Stock Loan, both Standardized Margin Buying and Selling are allowed.
    For Issues Eligible Only for Fund Loan, only Standardized Margin Buying is allowed.
    For Not-eligible Issues, Standardized Margin Transactions are not allowed.     		1
    E Availability (CXJ) 〃 1
    F Availability (JNX) 〃 1
    G Availability (ODX) 〃 1
    H Availability (NSE) 〃 2
    I Availability (FSE) 〃 0
    J Availability (SSE) 〃 0

Handbook

Video - About Standardized Margin Trading

Margin Transactions and Loans for Margin Transactions structure

The Selection

Loans for Margin Transactions Outstanding

Fund Loan and Stock Loan Outstanding by Issue (Preliminary data & Final data)

JSF Auction, Gyaku-hibu, Maximum Bidding Rate, Bid to Cover Ratio

Restriction Suspension of Loans for Margin Transactions

Handling of Rights, Subscription of New Stocks and Bidding for Rights

Rules and Conditions

The Terms and Conditions of Loans for margin transactions

Hints and Tips

Using Information on Loans for Margin Transactions