Tokyo Stock Exchange

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Tokyo Stock Exchange
Japan Exchange Group logo.svg
The TSE uses the logo of its parent company, the Japan Exchange Group
Facade of the Tokyo Stock Exchange
TypeStock exchange
LocationTokyo, Japan
FoundedMay 15, 1878; 143 years ago (1878-05-15) (as Tokyo Kabushiki Torihikijo)
May 16, 1949 (1949-05-16) (as Tokyo Stock Exchange)
OwnerJapan Exchange Group, Inc.
(Tokyo Stock Exchange Group, Inc.)
Key peopleTaizo Nishimuro, Chairman
Atsushi Saito, President & CEO
Yasuo Tobiyama, MD, COO & CFO
CurrencyJapanese yen
No. of listings2,292
Market capUS$5.67 trillion (Feb . 2019)[1]
VolumeUS$3.9 trillion (Dec 2011)
IndicesNikkei 225
Logo used prior to JPX merger

The Tokyo Stock Exchange (東京証券取引所, とうきょうしょうけんとりひきじょ), abbreviated as Tosho (東証) or TSE/TYO, is a stock exchange located in Tokyo, Japan. It is the third largest stock exchange in the world by aggregate market capitalization of its listed companies, and the largest in Asia. It had 2,292 listed companies with a combined market capitalization of US$5.67 trillion as of February 2019.

The exchange is owned by the Japan Exchange Group (JPX), a holding company that it also lists (TYO: 8697). JPX was formed from its merger with the Osaka Exchange; the merger process begins in July 2012, when said merger was approved by the Japan Fair Trade Commission.[2] JPX itself was launched on January 1, 2013.[3]


The TSE is incorporated as a kabushiki gaisha 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. Its operating hours are from 8:00 to 11:30 a.m., and from 12:30 to 5:00 p.m. 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, and the TOKYO PRO Market section for more flexible alternative investment. As of October 31, 2010, there are 1,675 First Section companies, 437 Second Section companies and 182 Mothers companies.[4]

The main indices 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.

Ninety-four domestic and 10 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 Kabuto Club (兜倶楽部, Kabuto kurabu), 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.[5]



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 Ōkuma Shigenobu and capitalist advocate Shibusawa Eiichi. Trading began on June 1, 1878.

In 1943, the exchange was combined with eleven [6] 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.


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.

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.[7]

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.

Technology problems[edit]

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.[8] 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.[9]

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.[8][10][11][12][13][14][15][16]

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.[17]

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.[18] 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 will be indefinite until the problem is resolved. Other stock markets in Japan have also suspended trading.[19][20][21][22]


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.[23] 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.[24]

First, Second and Other Sections[edit]

Corporate shares are listed and traded at Tokyo Stock Exchange in several 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, in Japanese: マザーズ, established at TSE in 1999) which are both for emerging companies; and TOKYO PRO Market (in Japanese: TOKYO PRO Market) which was established in 2009 jointly with London Stock Exchange as an AIM.

There were a total of 3,607 companies listed in Tokyo Stock Exchange, as of March 31, 2018.[25]

Listed in TSE (as of October 2, 2017)
Market Names Total (Overseas
First Section 2032 (3)
Second Section 525 (1)
Emerging Companies Market Mothers 241 (1)
JASDAQ Standard 708 (1)
Growth 41 (0)
PRO Market 19 (0)
Total 3566 (6)

There are also active bond market and futures market.


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).[26]

See also[edit]


  1. ^ "Largest stock exchanges in the world". The Economic Times. June 19, 2010. Retrieved 19 Jun 2010.
  2. ^ "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.
  3. ^ 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.
  4. ^ Tokyo Stock Exchange. "Breakdown of TSE listed stocks". Archived from the original on March 27, 2010. Retrieved April 8, 2010. (in English)
  5. ^ Yasu, Mariko (2007-06-15). "Tokyo Stock Exchange Buys 4.99% of Singapore Exchange (Update2)". Bloomberg. Retrieved 2010-07-10.
  6. ^ "History".
  7. ^ 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
  8. ^ a b Fujitsu execs take pay cut after Tokyo exchange crash, 25th November 2005
  9. ^ Fat fingered typing costs a trader’s bosses £128m
  10. ^ Tokyo Exchange Struggles With Snarls in Electronics NY Times, December 13, 2005
  11. ^ "What's Going on at the Tokyo Stock Exchange - Seeking Alpha". Seeking Alpha. December 15, 2005. Retrieved 2010-07-10.
  12. ^ Tokyo Stock Exchange admits error in Mizuho trade botch-up, 12 December 2005
  13. ^ Mizuho Says Trader Error to Cost It at Least $224 Mln (Update5), Bloomberg, December 9, 2005
  14. ^ "archives". Taipei Times. 2005-12-10. Retrieved 2010-07-31.
  15. ^ "Tokyo Stock Exchange plans cash settlement in Mizuho fiasco - report". November 12, 2005. Retrieved 2010-07-10.
  16. ^ "Botched stock trade costs Japan firm $225M - Business - World business - NBC News". NBC News. 2005-12-14. Retrieved 2010-07-10.
  17. ^ After Panic, Tokyo Market Rebounds, The New York Times, January 19, 2006
  18. ^ "Tokyo stock exchange halts trading in worst outage since 1999". Financial Times. October 1, 2020. Retrieved October 1, 2020.
  19. ^ "Japan's Tokyo Stock Exchange suffers its worst outage ever". CNN. October 1, 2020. Retrieved October 1, 2020.
  20. ^ "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.
  21. ^ "Tokyo stock exchange trading halted for the day due to technical problem". The Guardian. October 1, 2020. Retrieved October 1, 2020.
  22. ^ "Tokyo trading halted for rest of Thursday due to hardware failure". The Japan Times. October 1, 2020. Retrieved October 1, 2020.
  23. ^ Market Hours, Tokyo Securities Exchange via Wikinvest
  24. ^ "TSE : Calendar". Archived from the original on 2010-12-26. Retrieved 2010-10-07.
  25. ^ Number of Listed Companies/Shares (Japan Exchange Group)
  26. ^ Ku, Daisy (July 29, 2008). "London bourse outlines framework for Tokyo JV | Reuters". Retrieved 2010-07-10.

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