Tokyo Stock Exchange, Inc.

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Tokyo Stock Exchange
Founded 1878
Headquarters Tokyo, Japan
Key People Akira Kiyota, Chief Executive, Japan Exchange Group
Products Japanese cash equities, JGB futures, TOPIX Index futures

The Tokyo Stock Exchange (TSE) is the world's fourth-largest equities exchange by share traded and publishes the benchmark TOPIX index group of Japanese listed stocks daily. The TSE tightened its listing standards in 2009 after being forced to postpone a plan to list its own shares. It is a licensed financial instruments exchange under the Financial Instruments and Exchange Act of Japan.

On January 1, 2013, TSE merged with the Osaka Securities Exchange (OSE) to create a new holding company called Japan Exchange Group.[1]

In July of 2013, TSE added 1,100 stocks from the Osaka Securities Exchanges after the two merged their cash-equity platforms. This move made TSE the world's third biggest bourse by listed companies. Stocks that were listed on OSE but not on TSE will now only trade on the TSE. Any stocks listed on both markets will only trade on the TSE. Notable stock migrations include Nintendo Co., Murata Manufacturing Co. and Nidec Corp.[2]

TSE was ranked as the world's 34th-largest derivatives exchange by volume in 2012, according to the annual volume survey published by the Futures Industry Association (FIA).[3] The FIA report notes that the TSE's total volume for 2012 was up by 17.6% from the previous year, reaching almost 29.1 million contracts.


The Tokyo Stock Exchange traces its roots back to 1878 when a securities system was introduced in Japan for public bond negotiation. After passage of the "Stock Exchange Ordinance" in May of 1878, the Tokyo Stock Exchange Co., Ltd. was established on May 15, 1878 and trading began on June 1.[4]

As the Japanese economic and investment boom of the 1980s gained momentum, the TSE opened a new, enlarged stock trading floor to accommodate the demand. However, activity on the trading floor began to dwindle in the mid-1990s as the TSE increased computerization of its stock trading, and the floor was eventually closed at the end of 1998 when the TSE switched to electronic trading.[5]

TSE broke new ground by deciding to list exchange-traded funds tracking two foreign equities markets and listing TOPIX-tracking funds abroad in search of market expansion. TSE launched the NY Dow ETF, tracking the NYSE's benchmark Dow Jones Industrial Average on December 10, 2009 -- the first listed investment vehicle linked to American stocks to trade in a Japanese market.[6]

The S&P CNX Nifty Index, based on the benchmark CNX Nifty stock index of the National Stock Exchange of India began trading November 26, 2009 - the first-ever Japanese-listed vehicle linked to the Indian stock market.[7]

Also in November of 2009, TSE received the green light from American trading regulator the Commodity Futures Trading Commission to allow trading in the US of three TSE futures contracts based on Japanese markets.[8] The mini-TOPIX futures contract, TOPIX Core30 futures contract and TSE REIT index futures contract, were first launched in June 2008 to international investors looking for broader exposure to the Japanese securities markets.

In January of 2010, TSE launched its new trading platform, Arrowhead, bringing its technology in line with global standards.[9]

In March 2009 the TSE was forced to postpone its own IPO until April 2010 after batterings from the 2008 financial crisis depressed trading and profits, while the benchmark Nikkei 225 Stock Average fell 42% in 2008 to hit its lowest level in 27 years.[10] Three months earlier the TSE reported a quarterly profit fall of 54%, and the exchange expects its operating profit to around 60% year-on-year to 2010 after recording a pretax loss in the financial year to March 2009.[11]

Six months after this decision the TSE tightened its listing requirements somewhat by insisting that listed companies begin appointing at least one independent director to sit on their boards.[12] The previous system of not requiring such directors on listed companies had long irked Japanese equities investors. The TSE is also studying the prospect of simplifiying its required quarterly earnings reports to help lighten the reportage burden on listed companies.

The Tokyo Stock Exchange in 2009 ranked as the world's second-largest stock exchange by market capitalization but only its fourth-largest when measured by shares traded.[13] The TSE's total share turnover in the year to September 2009 was US$2.676 trillion while its total market value stood at US$3.479 trillion.[14]

A Nikkei news report cited by Reuters in July 2010 said the exchange was seeking public comment and polling institutional investors and brokerages as it considered expanding trading hours. The move would follow the launch of a faster trading system earlier in 2010 as the exchange takes steps to better compete with fast-growing China and other global markets. Cash trading at TSE now starts at 9:00 a.m. (0000 GMT) and ends at 3:00 p.m. with a lunch break between 11:00 a.m. and 12:30 p.m. Changes may include starting the trading day earlier and finishing later, eliminating a break between the morning and afternoon sessions, and establishing an evening session.[15]

On November 20, 2020, Koichiro Miyahara, TSE president and chief executive, announced he would resign, taking responsibility for a major technical glitch that closed the stock exchange for a full day in October 2020. Following a review, the system failure was reportedly traced to the Fujitsu-built Arrowhead system that handles exchange trading. Miyahara was replaced by Akira Kiyota, chief executive of Japan Exchange Group, who also said he would take a 50-percent reduction in his salary for four months. [16]

On April 4, 2022, the exchange implemented its biggest restructuring in more than 60 years, introducing three new market segments - Prime, Standard and Growth. The change was intended to boost Japanese stocks’ appeal and understandability to foreign investors, but it met with a mixed reception.[17]

On September 22, 2022, The New York Stock Exchange and Tokyo Stock Exchange announced an agreement to support cross-border investment between the U.S. and Japan by collaborating in areas including product development, marketing, and information sharing. The two exchanges signed the memorandum during the visit of Japanese Prime Minister Fumio Kishida to the NYSE and the agreement was finalized in a ceremony on the NYSE trading floor.[18]

Listed derivatives[edit]

Below are the TSE's listed derivatives contracts that have individual MarketsWiki entries:

Key People[edit]

Annual Volumes[edit]

Year Total Annual Volume* Percent Change World Ranking
2012 29,079,934 (+) 17.6% 34
2011 ~24,700,000 (est.) (-) 8.0% --
2010 26,875,977 (+) 2.6% 35
2009 26,201,383 -- --