FOR IMMEDIATE RELEASE

Contact:
Clare Williams
Mariko Hayashibara+852 2903 2298
+813 4530 5623
clare.williams@barcap.com mariko.hayashibara@barcap.com
Timothy Cuffe+852 2903 4021
timothy.cuffe@barcap.com

BARCLAYS CAPITAL JAPAN LIMITED RECEIVESSANCTIONS FROM THE FINANCIAL SERVICESAGENCY OF JAPANTOKYO, September 30, 2011- Barclays Capital Japan Limited (BCJL) has today received
administrative sanctions from the Financial Services Agency in Japan (JFSA) based on Articles 51 and52-(1) of the Financial Instruments and Exchange Act.
Outline of Sanctions(1) Business suspension order
Period: 10 business days from 11 October 2011 (Tuesday) to 24 October 2011 (Monday)
Affected functions: Receiving orders to buy or sell shares from affiliated companies (excludingtransactions etc. to conclude customer transactions) and new business deployment which involves theprovision of systems (excluding those specifically approved by the Agency).
(2) Business improvement order
1) Clarifying who is responsible for the violation of the law, 2) Ensuring compliance with the laws
and regulations by directors/officers/employees, and developing measures to prevent reoccurrence,3) Enhancing and strengthening the internal control framework including the management ofcomputer systems, and reporting in writing the status of implementation of 1) to 3) above by 21October 2011 (Friday) and, in addition, the progress made on 2) and 3) after that date by 4 January
2012 (Wednesday), and thereafter on a quarterly basis and as required.
This was a technical error relating to short-sell identification, which occurred when BCJL developed arequired electronic message conversion system connecting to the Osaka Securities Exchange (OSE) for ouroverseas affiliated entity’s own account equity trading orders. This error, which was not tested for duringsystem checking prior to launch, resulted in a portion of executed short sales in cash equities being
incorrectly coded and, therefore, executed in breach of regulations.
Upon BCJL discovering the error, it immediately reported the error to the regulators and suspended
all transactions in cash equities which used the conversion system to place orders to the OSE. Thiswas caused by an IT system coding error and an internal review concluded that there was nodeliberate intention to manipulate the market and derive a benefit.
From BCJL’s review, it also concluded that the technical error was only in the system connecting tothe OSE and that all equivalent systems linking to others exchanges are functioning correctly. No
clients were impacted by the IT coding error.
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Barclays is committed to the highest levels of integrity and regulatory compliance across all of its
operations and acknowledges its error. We have conducted a thorough investigation into this issueand will enhance further our compliance processes and governance to prevent such an error fromreoccurring. A business improvement plan will be submitted to the JFSA.
All other business conducted by BCJL, as well as all business conducted by other Barclays entities in Japan,
will not be affected by the suspension and will continue as usual.
-- END --About Barclays Capital
Barclays Capital is the investment banking division of Barclays Bank PLC. With a distinctive business model, Barclays Capital provides large
corporate, government and institutional clients with a full spectrum of solutions to their strategic advisory, financing and risk management needs.
Barclays Capital has offices around the world, employs 25,000 people and has the global reach, advisory services and distribution power to meetthe needs of issuers and investors worldwide. For further information about Barclays Capital, please visit our website www.barclayscapital.com
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