Osaka Securities Exchange
Encyclopedia
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
, in terms of amount of business handled. As of 31 December 2007, the Osaka Securities Exchange had 477 listed companies with a combined market capitalization of $212 billion. The Nikkei 225 Futures
Nikkei 225
The , more commonly called the Nikkei, the Nikkei index, or the Nikkei Stock Average , is a stock market index for the Tokyo Stock Exchange . It has been calculated daily by the Nihon Keizai Shimbun newspaper since 1950. It is a price-weighted average , and the components are reviewed once a year...
, introduced at the Osaka Securities Exchange in 1988, is now an internationally recognized futures index. In contrast to the Tokyo Securities Exchange, which mainly deals in spot trading, the Osaka Securities Exchange’s strength is in derivative products today OSE is the leading Derivatives Exchange in Japan and it was the largest futures market in the world in 1990 and 1991. According to statistics from 2003, the Osaka Securities Exchange handled 59% of the stock price index futures market in Japan, and almost 100% of trading in the options market. Osaka Securities Exchange Co., which listed on its Hercules market for startups in April 2004 is the only Japanese securities exchange which went public on its own market.
In July 2006 OSE launched their newest futures contract the Nikkei 225 mini which is one tenth of the size of the original Nikkei 225 Futures contract and highly popular among Japanese individual investors.
In September 2007 OSE established evening session for Stock Index
Stock market index
A stock market index is a method of measuring a section of the stock market. Many indices are cited by news or financial services firms and are used as benchmarks, to measure the performance of portfolios such as mutual funds....
Future
Futures contract
In finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange...
s and Option
Option (finance)
In finance, an option is a derivative financial instrument that specifies a contract between two parties for a future transaction on an asset at a reference price. The buyer of the option gains the right, but not the obligation, to engage in that transaction, while the seller incurs the...
s.The trading hours is from 16:30 to 19:00 (JST
Japan Standard Time
Japan Standard Time or JST is the standard timezone of Japan, and is 9 hours ahead of UTC. For example, when it is midnight in UTC, it is 09:00 in Japan Standard Time. There is no daylight saving time, though its introduction has been debated several times. Japan Standard Time is the same as...
. 7:30-10:00 in UTC
Coordinated Universal Time
Coordinated Universal Time is the primary time standard by which the world regulates clocks and time. It is one of several closely related successors to Greenwich Mean Time. Computer servers, online services and other entities that rely on having a universally accepted time use UTC for that purpose...
).
History
The birthplace for futuresFutures contract
In finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange...
transactions: Dōjima Rice Exchange
Dojima Rice Exchange
The Dōjima Rice Exchange , located in Osaka, was the center of Japan's system of rice brokers, which developed independently and privately in the Edo period and would be seen as the forerunners to a modern banking system...
(
The origin of securities exchanges stems from Edo Period
Edo period
The , or , is a division of Japanese history which was ruled by the shoguns of the Tokugawa family, running from 1603 to 1868. The political entity of this period was the Tokugawa shogunate....
, when the exchange for rice
Rice
Rice is the seed of the monocot plants Oryza sativa or Oryza glaberrima . As a cereal grain, it is the most important staple food for a large part of the world's human population, especially in East Asia, Southeast Asia, South Asia, the Middle East, and the West Indies...
& crop
Crop
Crop may refer to:* Crop, a plant grown and harvested for agricultural use* Crop , part of the alimentary tract of some animals* Crop , a modified whip used in horseback riding or disciplining humans...
was established in Osaka, center of Japanese economy. Each prefecture set up its own warehouses in Osaka for shipping & preservation of their rice (to be taxed by the government), and sold them to merchants. One of the most famous merchants was "Yodoya", which was based upon the southern part of Yodoyabashi area. Some other merchants gradually gathered to create one market. This market was called "Yodoya-Komeichi", which was the first securities exchange in the nation.
Later on, this market was moved to Dojima in 1697, so-called "Dojimakomekaisho", which was a physical market to trade in rice-tickets or physical rice. In 1716, Cho-gomai transaction was introduced and recognized by the government in 1730, which is said to be the origin of futures transactions
Futures contract
In finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange...
in Japan.
Chronology
- June 1878 - Osaka Stock Exchange Co., Ltd. established
- June 1943 - The Exchange became the Osaka Division of the Japan Securities Exchange during the Pacific War.
- August 1945 - Japan Securities Exchange suspended operations
- April 1947 - Japan Securities Exchange dissolved.
- May 1948 - A new Securities and Exchange Law enacted
- April 1949 - Osaka Securities Exchange established
- June 1951 - Credit transaction system introduced
- April 1956 - Bond market reopened
- October 1961 - Second section for stocks established
- May 1970 - Convertible bond market opened
- October 1973 - The Exchange became an associate member of the Federation Internationale des Bourses de Valeurs (FIBV)
- September 1974 - Computerized Market Information System began operation
- April 1982 - Constitutional restrictions on the membership of foreign securities companies removed
- June 1983 - The Exchange became a member of EASEC (EAOSEF in 1990: East Asian and Oceanian Stock Exchanges Federation)
- November 1983 - "Special Designated Issues" System, called "New Second Section", introduced
- December 1984 - Ten Minute Earlier Opening System for representative issues selected from among the first section stocks introduced
- June 9, 1987 - Trading in "Osaka Stock Futures 50 (OSF50)" started
- September 1988 - Trading in Nikkei Stock Average Futures (Nikkei 225 Futures) started
- October 1988 - Computer-assisted trading system for OSF50 and Nikkei 225 Futures began operation
- June 1989 - Trading in Nikkei Stock Average Options (Nikkei 225 Options) started
- December 1989 - Computer-assisted trading system for Nikkei 225 Options began operation
- March 1991 - Computer-assisted trading system for stocks began operation
- May 1991 - The Exchange became a member of the IAOECH (IOMA in 1993:lnternational Options Markets Association)
- December 1991 - The country fund market opened
- January 1992 - The Exchange received a No-action Letter from US Commodity Futures Trading Commission (CFTC) for Nikkei 225 Futures contract
- March 1992 - The "OSF 50" ceased trading in its futures contracts
(Trading of OSF 50 was ceased on March 20, 1992.)
- April 1992 - The Japan Securities Depository Centre (JASDEC), Osaka Office began its operation at the OSE
- February 1994 - Trading in Nikkei Stock Index 300 Futures and Options (Nikkei 300 Futures / Options) started
- May 1994 - The Exchange received a No-action Letter from US Commodity Futures Trading Commission (CFTC) for Nikkei 300 Futures contract.
- October 1994 - The Exchange became an affiliate member of the International Organization of Securities Commissions (IOSCO)
- May 1995 - Trading in "Nikkei 300 Stock Index fund" started
- January 1996 - "New Market", a system with "Issues listed under alternative listing criteria",introduced
- April 1996 - Nikkei 300 Futures Inter-month Spread Trading started
- October 1996 - Foreign stock market established
- May 1997 - Nikkei 225 Futures Inter-month Spread Trading started
- July 1997 - Equity Options Trading started
- December 8, 1997 - Trading floorFloor tradingFloor trading is where traders or stock brokers meet at a specific venue referred to as a trading floor or pit to buy and sell financial instruments using open outcry method to communicate which each other. These venues are typically stock exchanges or futures exchanges and transactions are...
for stocks closed and shifted completely to a computer assisted trading system
- December 1997 - Cross Trading System (for large block trades, execution at closing price and basket trades) started
- June 1998 - Trading in Sector Index Futures and Options started(Trading of these products was ceased on November 30, 2000.)
- December 1998 - New Market Section established
- January 1999 - J-NET Market opened
- March 1999 - The "Securities Transaction Tax" and "Exchange Tax" abolished
- June 1999 - A license contract for the use of SPAN with Chicago Mercantile Exchange concluded
- July 1999 - The Exchange obtained a No-Action Letter from the US Securities and Exchange (SEC) for Nikkei 225 Options, Nikkei 300 Options and Equity Options
- July 1999 - Full computerization of trading at the OSE was completed
- October 1999 - OSE ED-NET, an electronic disclosure network system established
- November 1999 - A clearing organization method introduced
- November 1999 - Non-Auction Large Block Trades for Stock Index Futures and Options started
- December 1999 - An agreement to establish the NASDAQ Japan Market announced
- February 2000 - Private Finance Initiative (PFI) market established
- May 2000 - Nasdaq Japan Market established
- June 2000 - Trading on Nasdaq Japan Market started
- August 2007 - Gold-Price-Linked exchange-traded fundExchange-traded fundAn exchange-traded fund is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as the S&P 500 or MSCI EAFE...
is listed in OSE (The first case in Japanese Market, besides stock exchange traded fund).http://www.iht.com/articles/2007/04/05/bloomberg/bxinvest.php
- September 2007 - Introduction of Evening Session for all the Stock Index Futures and Options
- October 2007 - SSE50SSE CompositeThe SSE Composite Index is an index of all stocks that are traded at the Shanghai Stock Exchange.-Weighting and calculation:...
-Linked exchange-traded fundExchange-traded fundAn exchange-traded fund is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as the S&P 500 or MSCI EAFE...
is listed in OSE (The first case treated foreign Stock market indexStock market indexA stock market index is a method of measuring a section of the stock market. Many indices are cited by news or financial services firms and are used as benchmarks, to measure the performance of portfolios such as mutual funds....
in Japanese Market, besides stock exchange traded fund).
External links
- Website of OSE (both English and Japanese)
- Website of OSE JASDAQ Market (both English and Japanese)
- Exchange Holidays (English)