The Tokyo Stock Exchange has no intention of spinning off the division that sets rules for listing applications and equities transactions when the bourse becomes a listed company later this year, TSE President Takuo Tsurushima said Tuesday.
"To ensure the credibility of the market, it is inevitable that a market operator exercises regulatory functions on its own," Tsurushima told a news conference. "Profit-seeking and self-regulatory functions are basically not contradictory."
Tsurushima's comments came after the Financial Services Agency recently ordered the bourse to examine how to deal with its regulatory duties as it plans to go public by the end of this year.
The New York Stock Exchange said last month it will spin off its regulatory division as a nonprofit organization when it becomes a publicly traded company.
The London Stock Exchange earlier handed over its supervisory division to Britain's official financial-industry regulator, the Financial Services Authority.
Following a scandal involving Kanebo Ltd., the FSA has called on the TSE to review its delisting standards, but Tsurushima indicated he is not inclined to do so.
"Delisting rules relating to misstatement (of financial reports) touch on the fundamentals of market credibility," he said. "It is necessary to carefully discuss the review issue."
The TSE has been ordered to report its positions on delisting standards, self-regulatory functions and information management to the FSA by June 13.
The TSE decided Thursday to delist Kanebo in June for systematically falsifying financial statements.