Tokyo Stock Exchange

Last updated
Tokyo Stock Exchange
東京証券取引所
Japan Exchange Group logo.svg
The TSE uses the logo of its parent company, the Japan Exchange Group.
Tokyo Stock Exchange Main Building (1988).jpg
Façade of the Tokyo Stock Exchange
Type Stock exchange
LocationTokyo, Japan
Coordinates 35°40′53″N139°46′40″E / 35.68139°N 139.77778°E / 35.68139; 139.77778
FoundedMay 15, 1878;145 years ago (1878-05-15) (as Tokyo Kabushiki Torihikijo)
May 16, 1949 (1949-05-16) (as Tokyo Stock Exchange)
Owner Japan Exchange Group
Key people
  • Taizo Nishimuro (Chairman)
  • Atsushi Saito (President & CEO)
  • Yasuo Tobiyama (MD, COO & CFO)
Currency Japanese yen
No. of listings3,899 (21 Aug. 2023)
Market cap US$5.65 trillion (Jan 2023) [1]
Indices Nikkei 225
TOPIX
Website jpx.co.jp

The Tokyo Stock Exchange (東京証券取引所, Tōkyō Shōken Torihikijo), abbreviated as Tosho (東証) or TSE/TYO, is a stock exchange located in Tokyo, Japan.

Contents

The exchange is owned by Japan Exchange Group (JPX), a holding company that it also lists (TYO : 8697), and operated by Tokyo Stock Exchange, Inc. [2] , a wholly owned subsidiary of JPX. JPX was formed from merger of Tokyo Stock Exchange Group, Inc. with Osaka Securities Exchange Co., Ltd. [3] (now Osaka Exchange, Inc. [4] ); the merger process began in July 2012, when said merger was approved by the Japan Fair Trade Commission. [5] [3] JPX itself was launched on January 1, 2013. [6]

Overview

The TSE is incorporated as a kabushiki gaisha (joint-stock company) with nine directors, four auditors and eight executive officers. Its headquarters are located at 2-1 Nihonbashi-Kabutochō, Chūō, Tokyo which is the largest financial district in Japan.

The main indices tracking the stock market of TSE are the Nikkei 225 index of companies selected by the Nihon Keizai Shimbun (Japan's largest business newspaper), the TOPIX index based on the share prices of Prime companies, and the J30 index of large industrial companies maintained by Japan's major broadsheet newspapers. There are also active bond market and futures market.

Ninety-four domestic and 10 foreign securities companies participate in TSE trading. See: Members of the Tokyo Stock Exchange

Press club

The exchange's press club, called the Kabuto Club ( 兜倶楽部 , Kabuto kurabu), meets on the third floor of the TSE building. Most Kabuto Club members are affiliated with the Nihon Keizai Shimbun, Kyodo News, Jiji Press, or business television broadcasters such as Bloomberg LP and CNBC. The Kabuto Club is generally busiest during April and May, when public companies release their annual accounts.

Hours

The exchange's normal trading sessions are from 9:00 a.m. to 11:30 a.m. and from 12:30 p.m. to 3:00 p.m. on all days of the week except Saturdays, Sundays and holidays declared by the Exchange in advance. [7] The exchange is closed for the following holidays: New Year's Day, Coming of Age Day, National Foundation Day, Vernal Equinox Day, Shōwa Day, Constitution Memorial Day, Greenery Day, Children's Day, Marine Day, Respect for the Aged Day, Autumnal Equinox, Health and Sports Day, Culture Day, Labour Thanksgiving Day, and The Emperor's Birthday. [8]

Stock market

First, Second and other Sections until April 4, 2022

Old market segments until April 2022 (in Japanese) Markets of Tokyo Stock Exchange 2014-12-11.png
Old market segments until April 2022 (in Japanese)

Until April 4, 2022, [9] corporate shares are listed and traded at Tokyo Stock Exchange in five market sections: the First Section which started when Tokyo Stock Exchange was re-established in 1949 and includes mainly large companies; the Second Section which started in 1961 and includes mainly mid-sized companies; JASDAQ (established in 1991, acquired by Osaka Stock Exchange in 2010, and absorbed into TSE in 2013) and Mothers (Market of the high-growth and emerging stocks, established at TSE in 1999) which are both for emerging companies; and TOKYO PRO Market which was established in 2009 jointly with London Stock Exchange as an Alternative Investment Market (Tokyo AIM) for small companies.

There were a total of 3,821 companies listed in Tokyo Stock Exchange, as of March 31, 2022. [10]

Listed in TSE (as of March 31, 2022）
Business sizeMarket namesTotal(Overseas

companies)

LargeMain Market

(本則市場)

First Section (市場第一部)2,176(1)
Mid-sizedSecond Section (市場第二部)475(1)
EmergingMothers (マザーズ)432(3)
JASDAQStandard (スタンダード)652(1)
Growth (グロース)34(0)
SmallTOKYO PRO Market52(0)
Total3,821(6)

Prime, Standard and Growth markets since April 4, 2022

Number of companies transitioning into the new market division structure on April 4, 2022 (in Japanese) Tokyo Stock Exchange reorganization in 2022 2022-01-27.png
Number of companies transitioning into the new market division structure on April 4, 2022 (in Japanese)

Beginning April 4, 2022, the market divisions were restructured into the Prime, Standard and Growth market divisions, differentiated by market liquidity, corporate governance, and other criteria. [9] Companies voluntarily selected their new division between September and December 2021, and the results were published on January 11, 2022. [9] From the First Section, 1841 companies were transitioned into the Prime market and 344 companies were transitioned into the Standard market. All 474 companies in the Second Section were also transitioned into the Standard market. From JASDAQ, all 658 companies in its Standard subsection were transitioned into the Standard market and all 36 companies in the Growth subsection were transitioned into the Growth market, along with all 424 companies in the Mothers section.

There were a total of 3,899 companies listed in Tokyo Stock Exchange, as of 21 August, 2023. [10]

Listed in TSE (as of 21 August, 2023）
Business sizeTotalTotal(Overseas
companies)
LargePrime Market (プライム市場)1,834(1)
Mid-sizedStandard Market (スタンダード市場)1,440(2)
EmergingGrowth Market (グロース市場)546(3)
SmallTOKYO PRO Market79(0)
Total3,899(6)

History

Prewar

The Tokyo Stock Exchange was established on May 15, 1878, as the Tokyo Kabushiki Torihikijo (東京株式取引所, also literally means the Tokyo Stock Exchange and shortened as Tōkabu (東株)) under the direction of then-Finance Minister Ōkuma Shigenobu and capitalist advocate Shibusawa Eiichi. Trading began on June 1, 1878.

In 1943, the exchange was combined with eleven [11] other stock exchanges in major Japanese cities to form a single Japanese Stock Exchange ( 日本証券取引所 , Nippon Shōken Torihikisho). The combined exchange was shut down on August 1, days before the bombing of Hiroshima.

Postwar

Logo used prior to JPX merger Tokyo Stock Exchange logo.svg
Logo used prior to JPX merger

The Tokyo Stock Exchange reopened under its current Japanese name on May 16, 1949, pursuant to the new Securities Exchange Act.

The TSE runup from 1983 to 1990 was unprecedented, in 1990 it accounted for over 60% of the world's stock market capitalization (by far the world's largest) before falling precipitously in value and rank one of the 4th largest exchange in the world by market capitalization of listed shares.[ citation needed ]

The current TSE building was opened on May 23, 1988, replacing the original TSE building from 1931, and the trading floor of the TSE was closed on April 30, 1999, so that the exchange could switch to electronic trading for all transactions. A new facility, called TSE Arrows ( 東証アローズ , Tōshō Arrows), opened on May 9, 2000. In 2010, the TSE launched its Arrowhead trading facility. [12]

In 2001, the TSE restructured itself as a kabushiki gaisha ("stock company"): before this time, it was structured as an incorporated association ( 社団法人 , shadan hōjin) with its members as shareholders.

On 15 June 2007, the TSE paid $303 million to acquire a 4.99% stake in Singapore Exchange Ltd. [13]

The London Stock Exchange (LSE) and the TSE are developing jointly traded products and share technology, marking the latest cross-border deal among bourses as international competition heats up.

In July 2008, the LSE and the TSE announced a new joint venture Tokyo-based market, which will be based on the LSE's Alternative Investment Market (AIM). [14]

Technology problems

The exchange was only able to operate for 90 minutes on November 1, 2005, due to bugs with a newly installed transactions system, developed by Fujitsu, which was supposed to help cope with higher trading volumes. The interruption in trading was the worst in the history of the exchange until October 1, 2020. [15] Trading was suspended for four-and-a-half hours.

During the initial public offering of advertising giant Dentsu, in December 2001, a trader at UBS Warburg, the Swiss investment bank, sent an order to sell 610,000 shares in this company at ¥1 each, while he intended to sell 1 share at ¥610,000. The bank lost £71 million. [16]

During yet another initial public offering, that of J-Com, on December 8, 2005, an employee at Mizuho Securities Co., Ltd. mistakenly typed an order to sell 600,000 shares at ¥1 each, instead of an order to sell 1 share at ¥600,000. Mizuho failed to catch the error; the Tokyo Stock Exchange initially blocked attempts to cancel the order, resulting in a net loss of US$347 million to be shared between the exchange and Mizuho. Both companies are now trying to deal with their troubles: lack of error checking, lack of safeguards, lack of reliability, lack of transparency, lack of testing, loss of confidence, and loss of profits. On 11 December, the TSE acknowledged that its system was at fault in the Mizuho trade. On 21 December, Takuo Tsurushima, chief executive of the TSE, and two other senior executives resigned over the Mizuho affair. [15] [17] [18] [19] [20] [21] [22] [23]

On January 17, 2006, the Nikkei 225 fell 2.8%, its fastest drop in nine months, as investors sold stocks across the board in the wake of a raid by prosecutors on internet company livedoor. The Tokyo Stock Exchange closed early on January 18 due to the trade volume threatening to exceed the exchange's computer system's capacity of 4.5 million trades per day. This was called the "livedoor shock". The exchange quickly increased its order capacity to five million trades a day. [24]

On October 1, 2020, for the first time in its history, the Tokyo Stock Exchange had to suspend trading in all shares for a whole day due to a technical glitch, causing buying and selling to freeze. This was announced just minutes before 9 a.m., when it was scheduled to open. [25] The problem was found to be in "the system for relaying market information", hence making the glitch a network problem, but the Asahi Shimbun reported that the glitch was due to a mechanical failure. Japan Exchange Group Inc., which operates the Tokyo Stock Exchange, said that the suspension would be indefinite until the problem was resolved. Other stock markets in Japan also suspended trading. [26] [27] [28] [29] Normal trading was resumed the following day. [30]

See also

Related Research Articles

<span class="mw-page-title-main">Toronto Stock Exchange</span> Stock exchange in Canada

The Toronto Stock Exchange is a stock exchange located in Toronto, Ontario, Canada. It is the 11th largest exchange in the world and the third largest in North America based on market capitalization. Based in the EY Tower in Toronto's Financial District, the TSX is a wholly owned subsidiary of the TMX Group for the trading of senior equities.

<span class="mw-page-title-main">Mizuho Financial Group</span> Bank and holding company

Mizuho Financial Group, Inc., abbreviated as MHFG, or simply called Mizuho, is a banking holding company headquartered in the Ōtemachi district of Chiyoda, Tokyo, Japan. The name "mizuho (瑞穂)" literally means "abundant rice" in Japanese and "harvest" in the figurative sense. Upon its founding, it was the largest bank in the world by assets. It is considered a systemically important bank by the Financial Stability Board.

<span class="mw-page-title-main">Fuji Bank</span> Japanese banking company

The Fuji Bank, Limited was one of Japan's major banks during the post–World War II era. It combined with Dai-Ichi Kangyo Bank and the Industrial Bank of Japan in 2000 to form Mizuho Financial Group, and changed its name to Mizuho Corporate Bank in 2002 after transferring its retail banking operations to Mizuho Bank.

<span class="mw-page-title-main">Singapore Exchange</span> Investment holding company in Singapore

Singapore Exchange Limited is a Singapore-based exchange conglomerate, operating equity, fixed income, currency and commodity markets. It provides a range of listing, trading, clearing, settlement, depository and data services. SGX Group is also a member of the World Federation of Exchanges and the Asian and Oceanian Stock Exchanges Federation.

<span class="mw-page-title-main">Yahoo! Japan</span> Japanese internet company

Yahoo! Japan Corporation is a Japanese internet company originally formed as a joint venture between American internet company Yahoo! and the Japanese company SoftBank. It is headquartered at Kioi Tower in the Tokyo Garden Terrace Kioicho complex in Kioicho, Chiyoda, Tokyo. Yahoo! Japan's web portal is the most visited website in Japan, and its internet services are mostly dominant in the country. According to The Japan Times, as of 2012, Yahoo Japan had a footprint on the internet market in Japan. In terms of use as a search engine, however, it has never surpassed Google. The company is the second largest search engine used in Japan as of July 2021, with a market share of 19% behind Google's 77%.

<span class="mw-page-title-main">Sumitomo Mitsui Banking Corporation</span> Japanese multinational banking and financial services company

Sumitomo Mitsui Banking Corporation is a Japanese multinational banking financial services institution owned by Sumitomo Mitsui Financial Group, Inc. It is headquartered in Yurakucho, Chiyoda, Tokyo, Japan. The group operates in retail, corporate, and investment banking segment worldwide. It provides financial products and services to a wide range of clients, including individuals, small and medium-sized enterprises, large corporations, financial institutions and public sector entities. Since 2011, it has been included into the Financial Stability Board's list of global systemically important banks.

livedoor Co.,Ltd. was a Japanese company that functioned as an Internet service provider and operator of a web portal and blog platform before being brought down by a scandal in 2006. The company was founded and led in its first 10 years by Takafumi Horie, known as "Horiemon" in Japan. Livedoor grew into one of Japan's premier Internet businesses, putting over 1,000 employees on its payroll at its peak. Its reliance on acquisitions and stock swap mergers to achieve growth also made it one of the country's most controversial enterprises. Its growth came to a resounding halt when scandal erupted in early 2006. An investigation of securities law violations led to a nosedive in the company's stock price. The Tokyo Stock Exchange delisted Livedoor on April 14, 2006. The floundering company's properties were purchased by South Korea–based NHN Corporation in 2010.

Marubeni Corporation is a sōgō shōsha headquartered in Nihonbashi, Chuo, Tokyo, Japan. It is one of the largest sogo shosha and has leading market shares in cereal and paper pulp trading as well as a strong electrical and industrial plant business. Marubeni is a member of the Mizuho keiretsu.

<span class="mw-page-title-main">Osaka Exchange</span> Japanese securities exchange located in Osaka

Osaka Exchange, Inc., renamed from Osaka Securities Exchange Co., Ltd., is the largest derivatives exchange in Japan, in terms of amount of business handled.

<span class="mw-page-title-main">Hakuhodo DY Holdings</span> Japanese advertising holding company

Hakuhodo DY Holdings Inc. (株式会社博報堂DYホールディングス) is a Japanese advertising holding company that owns Hakuhodo, Daiko, and Yomiko Advertising. It is the second largest advertising company in Japan, following Dentsu. Its headquarters are located in Akasaka, Minato, Tokyo.

Tokyo Stock Price Index, commonly known as TOPIX, along with the Nikkei 225, is an important stock market index for the Tokyo Stock Exchange (TSE) in Japan, tracking all domestic companies of the exchange's Prime market division. It is calculated and published by the TSE. As of 1 February 2011, there were 1,669 companies listed on the First Section of the TSE, and the market value for the index was ¥197.4 trillion.

<span class="mw-page-title-main">MUFG Bank</span> Japanese bank

MUFG Bank, Ltd. is a Japanese bank. Its headquarters is located in Marunouchi, Chiyoda, Tokyo, and it has 772 domestic branches and 76 overseas branches. It was established on January 1, 2006, through the merger of the Bank of Tokyo-Mitsubishi, Ltd and UFJ Bank Limited, along with Sumitomo Mitsui Banking Corporation and Mizuho Bank, is recognized as one of the three major megabanks in Japan.

<span class="mw-page-title-main">Microsoft Japan</span>

Microsoft Japan, officially Microsoft Japan Company, Limited, is a subsidiary of Microsoft based in Japan. Their headquarters are near to Shinagawa station at Minato-ku district of Tokyo.

<span class="mw-page-title-main">Mizuho Securities</span> Japanese investment banking company

Mizuho Securities Co., Ltd. is a Japanese investment banking and securities firm. It is a wholly owned subsidiary of Mizuho Financial Group.

<span class="mw-page-title-main">Japan Exchange Group</span> Japanese financial instruments exchange holding company and its corporate group

Japan Exchange Group, Inc., abbreviated as JPX or Nippon Torihikijo, is a Japanese "financial instruments exchange holding company" subject to the regulations of the Financial Instruments and Exchange Act enforced by the Financial Services Agency. JPX owns three licensed "financial instruments exchange" corporations: Tokyo Stock Exchange, Inc. (TSE), Osaka Exchange, Inc. (OSE), and Tokyo Commodity Exchange, Inc. (TOCOM). It was formed by the merger of TSE and OSE on January 1, 2013. As a result of this merger and market reorganization, TSE became the sole securities exchange of JPX and OSE became the largest derivatives exchange of JPX. In 2019, JPX acquired TOCOM to expand derivatives trading business in the commodity market. It also has an IT services and research arm, JPX Market Innovation & Research, Inc. (JPXI), a self-regulatory body, Japan Exchange Regulation (JPX-R), and a central clearing counterparty, Japan Securities Clearing Corporation (JSSC). As of June 2021, it is the world's fifth-largest stock exchange operator, behind NYSE, NASDAQ, SSE, and HKSE.

<span class="mw-page-title-main">Line Corporation</span> Japanese subsidiary of Z Holdings Corporation

Line Corporation is a Japanese Internet company and a subsidiary of Z Holdings, a joint venture between SoftBank Group and Naver Corporation. It was established in 2000 as the Japanese subsidiary of South Korean NHN Corporation's online game community site Hangame, under the name Hangame Japan. In 2003, it was renamed NHN Japan and in 2013, it was rebranded as Line Corporation.

<span class="mw-page-title-main">Seibu Holdings</span> Japanese comglomerate

Seibu Holdings, Inc. is a Japanese holding company that primarily owns Seibu Railway, Prince Hotels, and Seibu Bus and its subsidiaries, which are collectively known as the Seibu Group. In total, fifty-three companies across the world are affiliated with the Seibu Group. The company was formed in 2006 to restructure the group after it had come to light in 2004 that the predecessor to Seibu Holdings, Kokudo, had falsified the ownership of its shares in Seibu Railway for over forty years.

Mothers is one of Tokyo Stock Exchange's sections or markets, where the shares of startup companies are listed and traded. Its name is said to come from an acronym of "Market of the high-growth and emerging stocks".

<span class="mw-page-title-main">PR Times</span> Japanese public relations company

PR TIMES, Inc. is a Japanese public relations company headquartered in Minato, Tokyo. The main business is the operation of the press release distribution service of the same name and the support of corporate public relations and public hearing activities. In August, 2018 the company moved to the TSE First Section from the TSE Mothers startup market.

<span class="mw-page-title-main">Seven-Eleven Japan</span> Japanese convenience store chain

Seven-Eleven Japan Co., Ltd. is a Japanese convenience store chain headquartered in Chiyoda, Tokyo. It is a subsidiary of Seven & I Holdings. The company was established in 1973 as York Seven by the supermarket chain Ito-Yokado in collaboration with Southland Corporation, now known as 7-Eleven, Inc, an American convenience store chain. As of 2022, Seven-Eleven is the largest convenience store chain in Japan in terms of sales and number of stores. Additionally, it is one of the largest retail chains in Japan in terms of sales. In 2004, it acquired full ownership of the original 7-Eleven, Inc.

References

  1. ↑ "Market Statistics – March 2023 – World Federation of Exchanges". Focus.world-exchanges.org.
  2. ↑ "Company Profile - Tokyo Stock Exchange". Japan Exchange Group. Retrieved 2023-08-25.
  3. 1 2 "News from OSE". Japan Exchange Group. Retrieved 2023-08-25.
  4. ↑ "Company Profile - Osaka Exchange". Japan Exchange Group. Retrieved 2023-08-25.
  5. ↑ "Japan approves merger of Tokyo and Osaka exchanges". BBC News. July 5, 2012. Archived from the original on July 6, 2012. Retrieved July 7, 2012.
  6. ↑ Fukuyama, A. (January 14, 2012). "Tokyo Commodity Exchange to defer merger with Japan Exchange". The Asahi Shimbun. The Asahi Shimbun Company. Archived from the original on November 1, 2012. Retrieved November 8, 2012.
  7. ↑ Market Hours, Tokyo Securities Exchange via Wikinvest
  8. ↑ "TSE : Calendar". Archived from the original on 2010-12-26. Retrieved 2010-10-07.
  9. 1 2 3 www.jpx.co.jp/english/equities/market-restructure/market-segments/index.html
  10. 1 2 "Number of Listed Companies/Shares". Japan Exchange Group. Retrieved 2023-08-25.
  11. ↑ "History".
  12. ↑ Launch of "arrowhead", the Next-Generation Equity/CB Trading System -The Tokyo Market enters the Millisecond World with "arrowhead", Jan. 2, 2010 Archived March 19, 2011, at the Wayback Machine
  13. ↑ Yasu, Mariko (2007-06-15). "Tokyo Stock Exchange Buys 4.99% of Singapore Exchange (Update2)". Bloomberg. Retrieved 2010-07-10.
  14. ↑ Ku, Daisy (July 29, 2008). "London bourse outlines framework for Tokyo JV | Reuters". Uk.reuters.com. Retrieved 2010-07-10.
  15. 1 2 Fujitsu execs take pay cut after Tokyo exchange crash, 25th November 2005
  16. ↑ Fat fingered typing costs a trader's bosses £128m
  17. ↑ Tokyo Exchange Struggles With Snarls in Electronics NY Times, December 13, 2005
  18. ↑ "What's Going on at the Tokyo Stock Exchange - Seeking Alpha". Seeking Alpha. December 15, 2005. Retrieved 2010-07-10.
  19. ↑ Tokyo Stock Exchange admits error in Mizuho trade botch-up, 12 December 2005
  20. ↑ Mizuho Says Trader Error to Cost It at Least $224 Mln (Update5), Bloomberg, December 9, 2005
  21. ↑ "archives". Taipei Times. 2005-12-10. Retrieved 2010-07-31.
  22. ↑ "Tokyo Stock Exchange plans cash settlement in Mizuho fiasco - report". Forbes.com. November 12, 2005. Archived from the original on March 11, 2007. Retrieved 2010-07-10.
  23. ↑ "Botched stock trade costs Japan firm $225M - Business - World business - NBC News". NBC News. 2005-12-14. Retrieved 2010-07-10.
  24. ↑ After Panic, Tokyo Market Rebounds, The New York Times , January 19, 2006
  25. ↑ "Tokyo stock exchange halts trading in worst outage since 1999" . Financial Times. October 1, 2020. Archived from the original on 2022-12-10. Retrieved October 1, 2020.
  26. ↑ "Japan's Tokyo Stock Exchange suffers its worst outage ever". CNN. October 1, 2020. Retrieved October 1, 2020.
  27. ↑ "Tokyo Stock Exchange halts trading for the entire day in its biggest glitch ever as hardware outage freezes buying and selling". South China Morning Post. October 1, 2020. Retrieved October 1, 2020.
  28. ↑ "Tokyo stock exchange trading halted for the day due to technical problem". The Guardian. October 1, 2020. Retrieved October 1, 2020.
  29. ↑ "Tokyo trading halted for rest of Thursday due to hardware failure". The Japan Times. October 1, 2020. Retrieved October 1, 2020.
  30. ↑ "Tokyo Stock Exchange Resumes Trading After Daylong Shutdown". The Wall Street Journal. October 2, 2020. Retrieved February 13, 2022.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.