The , or
TSE, located in
Tokyo, officially , is one of the 47 prefectures of Japan and is located on the eastern side of the main island Honshū. The twenty-three special wards of Tokyo, each governed as a city, cover the area that was once the city of Tokyo in the eastern part of the prefecture, totaling over 8 million people....
,
Japanis an island country in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, People's Republic of 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...
, is the second largest
stock exchangeA stock exchange is a corporation or mutual organization which provides "trading" facilities for stock brokers and traders, to trade stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital...
in the world by aggregate
market capitalizationMarket capitalization/capitalisation is a measurement of the size of a business enterprise equal to the share price times the number of shares outstanding of a public company...
of its listed companies, second only to the
New York Stock ExchangeThe New York Stock Exchange is a stock exchange located at 11 Wall Street in lower Manhattan, New York City, New York, USA. It is the largest stock exchange in the world by United States dollar value of its listed companies' securities...
. As of 31 December 2007, the Tokyo Stock Exchange had 2,414 listed companies with a combined market capitalization of $4.3 trillion.
The TSE is incorporated as a
kabushiki kaishais a type of business defined under Japanese law.-Usage in language:Both kabushiki kaisha and the rendaku form kabushiki gaisha are used. The "K" spelling is much more common in the names of companies and in English-language legal literature, whereas the "G" pronunciation is dominant in...
with nine directors, four auditors and eight executive officers. Its headquarters are located at 2-1 Nihombashi Kabutocho,
Chūō, Tokyois one of the 23 special wards that form the heart of Tokyo, Japan. The ward refers to itself as Chūō City in English.Its Japanese name literally means "Central Ward," and it is historically the main commercial center of Tokyo, although Shinjuku has risen to challenge it since the end of World War II...
,
Japanis an island country in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, People's Republic of 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...
.
The , or
TSE, located in
Tokyo, officially , is one of the 47 prefectures of Japan and is located on the eastern side of the main island Honshū. The twenty-three special wards of Tokyo, each governed as a city, cover the area that was once the city of Tokyo in the eastern part of the prefecture, totaling over 8 million people....
,
Japanis an island country in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, People's Republic of 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...
, is the second largest
stock exchangeA stock exchange is a corporation or mutual organization which provides "trading" facilities for stock brokers and traders, to trade stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital...
in the world by aggregate
market capitalizationMarket capitalization/capitalisation is a measurement of the size of a business enterprise equal to the share price times the number of shares outstanding of a public company...
of its listed companies, second only to the
New York Stock ExchangeThe New York Stock Exchange is a stock exchange located at 11 Wall Street in lower Manhattan, New York City, New York, USA. It is the largest stock exchange in the world by United States dollar value of its listed companies' securities...
. 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 kaishais a type of business defined under Japanese law.-Usage in language:Both kabushiki kaisha and the rendaku form kabushiki gaisha are used. The "K" spelling is much more common in the names of companies and in English-language legal literature, whereas the "G" pronunciation is dominant in...
with nine directors, four auditors and eight executive officers. Its headquarters are located at 2-1 Nihombashi Kabutocho,
Chūō, Tokyois one of the 23 special wards that form the heart of Tokyo, Japan. The ward refers to itself as Chūō City in English.Its Japanese name literally means "Central Ward," and it is historically the main commercial center of Tokyo, although Shinjuku has risen to challenge it since the end of World War II...
,
Japanis an island country in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, People's Republic of 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...
. 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 225is 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. Currently, the Nikkei is the most widely quoted average of Japanese equities, similar...
index of companies selected by the
Nihon Keizai Shimbun, or , is one of the largest media corporations in Japan. Nikkei specializes in publishing financial, business and industry news. Its main news publications include:* Nihon Keizai Shimbun, a leading economic newspaper which calculates the Nikkei 225...
(Japan's largest business newspaper), the
TOPIXTokyo stock Price IndeX, commonly known as TOPIX, along with Nikkei 225, is an important stock market index for the Tokyo Stock Exchange in Japan, tracking all domestic companies of the exchange's First Section. As of 10 November 2008, there were 1713 companies listed on the first section of the TSE...
index based on the share prices of First Section companies, and the
J30J30 may refer to :* GS&WR Class J30, a 1875 Irish class of 0-6-0T steam locomotive* Honda J30, a 3 liter engine* Infiniti J30, a 1992 rear wheel drive luxury car* Westinghouse J30, a predesssecor of the 1940 Westinghouse J34 turbojet engineand also :...
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
, or , is one of the largest media corporations in Japan. Nikkei specializes in publishing financial, business and industry news. Its main news publications include:* Nihon Keizai Shimbun, a leading economic newspaper which calculates the Nikkei 225...
, Kyodo NewsKyodo News is a nonprofit cooperative news agency based in Minato, Tokyo. It was established in November 1945 and it distributes news to almost all newspapers, and radio and television networks in Japan. The newspapers using its news have about 50 million subscribers. K. K. Kyodo News is Kyodo...
, Jiji PressJiji Press Ltd. is a leading wire service in Japan. Headquartered at Ginza, Chuo, Tokyo, Jiji has 82 branch offices, general bureau and bureau in Japan and 28 general bureau globally. Seizo Wakabayashi is the current President of Jiji Press.-External links:*...
, or business television broadcasters such as Bloomberg LP and CNBCCNBC is a satellite and cable television business news channel in the U.S., owned and operated by NBC Universal. The network and its international spinoffs cover business headlines and provide live coverage of financial markets. The combined reach of CNBC and its siblings is 390 million viewers...
. 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.
http://www.bloomberg.com/apps/news?pid=20601080&sid=aZ2hmIz6eyrw&refer=asia
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 ShigenobuMarquis ; was a Japanese statesman and the 8th and 17th Prime Minister of Japan...
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 companyis a type of business defined under Japanese law.-Usage in language:Both kabushiki kaisha and the rendaku form kabushiki gaisha are used. The "K" spelling is much more common in the names of companies and in English-language legal literature, whereas the "G" pronunciation is dominant in...
: 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
Fujitsuis a Japanese multinational computer hardware and IT services company headquartered in the Shiodome City Center complex in Minato, Tokyo.. Fujitsu's central focus is on providing IT-driven business solutions, but the company and its subsidiaries also offer a diversity of products and services in...
, which was supposed to help cope with higher trading volumes. The interruption in trading was the worst in the history of the exchange.
http://www.theregister.co.uk/2005/11/25/stock_exchange_glitch_fall_out/ 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.
http://www.nytimes.com/2005/12/13/business/worldbusiness/13glitch.html
http://www.theregister.co.uk/2005/11/25/stock_exchange_glitch_fall_out/
http://japan.seekingalpha.com/article/5077 http://www.finextra.com/fullstory.asp?id=14643 http://www.bloomberg.com/apps/news?pid=10000080&sid=a0rSxr9MJe_E&refer=asia http://www.taipeitimes.com/News/worldbiz/archives/2005/12/10/2003283851 http://www.forbes.com/finance/feeds/afx/2005/12/11/afx2383299.html http://www.msnbc.msn.com/id/10394551/
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
livedooris an Internet service provider based in Tokyo, Japan, that runs a web portal and numerous other businesses. The company was founded and led in its first 10 years by Takafumi Horie, known as "Horiemon" in Japan...
. 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.
http://www.nytimes.com/2006/01/19/business/worldbusiness/19livedoor.html?pagewanted=2
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 ExchangeThe London Stock Exchange is a stock exchange located in London, United Kingdom. Founded in 1801, it is one of the largest stock exchanges in the world, with many overseas listings as well as British companies...
(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 ExchangeSingapore Exchange Limited is the stock exchange in Singapore. SGX was formed on December 1 1999, following the merger of two established and well-respected financial institutions - the Stock Exchange of Singapore and the Singapore International Monetary Exchange . It is the Asia-Pacific's first...
(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 ExchangeThe London Stock Exchange is a stock exchange located in London, United Kingdom. Founded in 1801, it is one of the largest stock exchanges in the world, with many overseas listings as well as British companies...
(LSE) and the TSE announced a new joint venture Tokyo-based market, which will be based on the LSE's
Alternative Investment MarketThe Alternative Investment Market is a sub-market of the London Stock Exchange, allowing smaller companies to float shares with a more flexible regulatory system than is applicable to the Main Market. The AIM was launched in 1995 and has raised almost £24 billion for more than 2,200 companies...
(AIM).
See also
- List of stock exchanges
- Nikkei 225
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. Currently, the Nikkei is the most widely quoted average of Japanese equities, similar...
- Topix
Tokyo stock Price IndeX, commonly known as TOPIX, along with Nikkei 225, is an important stock market index for the Tokyo Stock Exchange in Japan, tracking all domestic companies of the exchange's First Section. As of 10 November 2008, there were 1713 companies listed on the first section of the TSE...