Japan Exchange Group Inc.

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Japan Exchange Group
JPX.jpg
Founded 2013
Headquarters Tokyo
Key People Akira Kiyota, CEO

Japan Exchange Group (JPX) is the holding company created by the merger of the Tokyo Stock Exchange (TSE) and Osaka Securities Exchange (OSE), completed in January 2013. The TSE offers cash equities while the OSE operates derivatives trading.

The exchanges completed their cash equities integration in July 2013 and finished consolidating derivatives trading in March 2014. [1] [2]

JPX integrated the derivatives market operated by Tokyo Stock Exchange into that of Osaka Exchange (formerly Osaka Securities Exchange), and all trading operations were consolidated onto J-GATE, its electronic trading platform. The combined exchange offers derivatives products based on the Nikkei 225, TOPIX, and Japanese government bonds on a single market. [3]

JPX announced the purchase of the Tokyo Commodity Exchange in July 2019 for $50 million, making it a wholly owned subsidiary in September 2019. The two exchanges plan to fully merge in the summer of 2020.[4]

The exchange was ranked 16th in the world based on derivatives volume in 2018, according the Futures Industry Association Annual Volume Survey. The exchange reported derivatives volume of 388.3 million contracts in 2018, up 20 percent from the previous year.[5]

Background

Japan Exchange Group went public via a stock swap and listed on the TSE January 4, 2013. Shares of the stock fell 9.4 percent on its first day, ranking it tenth among global exchange groups. [6]

The company's clearinghouse is Japan Securities Clearing Corp. Its self-regulatory body is Tokyo Stock Exchange Regulation.[7]

On June 25, 2019, Japan Exchange Group and the Shanghai Stock Exchange launched Japan-China ETF Connectivity, a joint program that allows joint listings of exchange traded funds (ETF)s. There have been Chinese ETFs listed in Japan prior to the program, but this marks the first time Japanese ETFs were listed in China.[8]

JPX announced the purchase of the Tokyo Commodity Exchange in July 2019 for $50 million, making it a wholly owned subsidiary in September 2019. The two exchanges signed a non-disclosure agreement in October 2018 regarding a possible merger.[9][10]

Products and Services

The exchange offers cash stocks and derivatives, including futures and options on Japanese government bonds and international stock price indices such as TOPIX and Nikkei 225.[11] [12]

JPX launched trading in S&P CNX Nifty Index futures on March 24, 2014, along with futures on the Nikkei 225 Index. [13] It also plans to offer 20-year Japanese government bond futures starting April 7.[14]

Osaka Exchange launched the J-GATE platform on July 19, 2016.[15]

Key People

  • Akira Kiyota, Director & Representative Executive Officer, Group CEO

Derivatives Contract Volume

Year Total Annual Volume* Percent Change
2018 388,302,535 20.4%
2017 322,408,620 (-) 4.5%
2016 337,537,333 (-) 6.6%
2015 361,459,935 (+) 16.7%
2014 309,732,384 (-) 15.4%
2013 366,234,062 --

References

  1. Tokyo and Osaka Bourses Merge as Japan Exchange Group. Waters Technology.
  2. Bright Futures for Japan's Unified Futures?. The Wall Street Journal.
  3. Integration of Derivatives Market at JPX. JPX.
  4. One-stop bourse handling stocks, commodities to launch in summer 2020. The Mainichi.
  5. 2018 Annual Volume Survey. Futures Industry.org.
  6. Japan ‘super-bourse’ makes rocky start. The Financial Times.
  7. Japan Exchange Group to Be Launched Tues., Uniting TSE, OSE. JIJI Press.
  8. Ceremonies to Commemorate Launch of Japan-China ETF Connectivity. JPX.
  9. Japan Exchange Group, TOCOM to merge this year: sources. Reuters.
  10. JPX set to acquire Tokyo Commodity Exchange; Merger aims to raise volumes and boost Tokyo as a financial centre. FT.
  11. New Year's Message From Japan Exchange Group CEO, Atsushi Saito. MondoVisione.
  12. TSE faces international challenge. The Japan News.
  13. Agreement on Launch of S&P CNX Nifty Futures in Japan. JPX Press Release.
  14. Bright Future for Japan’s Unified Futures?. WSJ.
  15. The Release of New Derivatives Trading Platform "J-GATE". Japan Exchange Group.