The main trading room of the Tokyo
Stock Exchange, where trading is currently completed through
computers.
The , or
TSE, located in Tokyo
, Japan
, is the
second largest stock exchange in the
world by aggregate market
capitalization of its listed companies, second only to the
New York Stock
Exchange
. As of 31 December 2007, the Tokyo Stock
Exchange had 2,414 listed companies with a combined market
capitalization of $4.3 trillion.
Structure
The TSE is incorporated as a
kabushiki
kaisha with nine directors, four auditors and eight executive
officers.
Its headquarters are located at 2-1 Nihombashi
Kabutocho, Chūō,
Tokyo, Japan. Its
operating hours are from 9:00 to 11:00 am, and from 12:30 to 3:00
pm. From April 24, 2006, the afternoon trading session started at
its usual time of 12:30 p.m.
Stocks listed on the TSE are separated into the First Section (for
large companies), the Second Section (for mid-sized companies), and
the "
Mothers" section (for high-growth startup
companies). As of March 2006, there are 1,721 First Section
companies, 489 Second Section companies and 156 Mothers
companies.
The main indixes tracking the 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 First Section
companies, and the
J30 index of large industrial
companies maintained by Japan's major broadsheet newspapers.
89 domestic and 19 foreign securities companies participate in TSE
trading.
See: Members of the Tokyo Stock
Exchange
Other TSE-related institutions include:
- The exchange's press club, called the , which 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.
On 15 June 2007, the TSE paid $303 million to acquire a 4.99% stake
in Singapore Exchange Ltd.
[28045]
History
Prewar history
The Tokyo Stock Exchange was established on May 15, 1878, as the
Tokyo Kabushiki Torihikijo (東京株式取引所) under the direction
of then-Finance Minister
Okuma
Shigenobu and capitalist advocate
Shibusawa Eiichi. Trading began on June 1,
1878.
In 1943, the exchange was combined with ten other stock exchanges
in major Japanese cities to form a single . The combined exchange
was shut down and reorganized shortly after the bombing of
Nagasaki.
Postwar history
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 rankings today, but still remains one of the 3 largest
exchanges in the world by market capitalization of listed
shares.
The trading floor of the TSE was closed on April 30, 1999, and the
exchange switched to electronic trading for all transactions. A new
facility, called , opened on May 9, 2000.
In 2001, the TSE restructured itself as a
stock company: before this time, it was
structured as an with its members as shareholders.
I.T. issues
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.
[28046] Trading was suspended for
four-and-a-half hours.
During the initial public offering of
J-Com on
December 8, 2005, an employee at
Mizuho Securities Co., Ltd.
mistakenly typed an order to sell 610,000 shares at 1
yen, instead of an order to sell 1 share at 610,000
yen. Mizuho failed to catch the error; the Tokyo
Stock Exchange initially blocked attempts to cancel the order,
resulting in a net loss of 347 million
US
dollars 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.
[28047][28048][28049] [28050] [28051] [28052] [28053] [28054]
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.
[28055]
Hours
The exchange's normal trading sessions are from 09:00am to 11:00am
and from 12:30pm to 3:00pm on all days of the week except
Saturdays, Sundays and holidays declared by the Exchange in
advance.
Alliances
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. The TSE is also looking for
some partners in Asia, and more specifically is seeking an alliance
with the
Singapore Exchange
(SGX), which is considered as becoming a leading financial hub in
the Asia-Pacific region. Recently, some rumors close to the deal
suggest that the TSE is preparing for a takeover of the SGX, or at
least take a major stake, in the first semester of 2008. The TSE
has already acquired a 5% stake in the SGX as of June 2007, deemed
to be only the beginning of greater participation.
London Stock Exchange Group plc|London Stock Exchange joint
venture
In July 2008 the
London Stock
Exchange (LSE) and the TSE announced a new joint venture
Tokyo-based market, which will be based on the LSE's
Alternative Investment Market
(AIM).
See also
References
- Number of Listed Companies and Total Market Cap, Tokyo Stock Exchange page on
Wikinvest
- Market Hours, Tokyo Securities
Exchange via Wikinvest
-
http://uk.reuters.com/article/mergersNews/idUKL920962620080729?pageNumber=1&virtualBrandChannel=0
Wikis
Quiz
Map
Search
