Tokyo Stock Exchange (TSE)
The Tokyo Stock Exchange, or TSE, is one of the largest stock markets in all of Asia, with over 3.9 million shares exchanging hands each trading day. The exchange supports the trading of bonds and derivatives in addition to equities.
History of the TSE
The history of the TSE dates back to the 1870's, when a securities system was established in Japan and public negotiating for bonds first began. The Tokyo Stock Exchange Co., LTD was established on May 15, 1878, and trading on the exchange began in June of that same year.
Between August 10, 1945 and April 1, 1949, official trading on the exchange was suspended due to the war. After several post-war reorganizations, the TSE emerged as the largest of the five stock exchanges in Japan, including the Sapporo Securities Exchange, Osaka Securities Exchange, Nagoya Stock Exchange, and Fukuoka Stock Exchange in addition to the TSE.
On July 1, 1969, the TSE introduced the TOPIX (Tokyo Stock Price Index), which is a composite index of all the domestic common stocks listed on the exchange. The TOPIX is considered the best indicator of the financial condition of the Japanese stock market.
The TSE is a member of the Japan Exchange Group, Inc., which a is holding company with subsidiaries that also include the Osaka Securities Exchange Co., Ltd. (OSE), as well as Tokyo Stock Exchange Regulation (TSER), and Japan Securities Clearing Corporation (JSCC).
Facts and Figures
The latest report (November 2020) on the Tokyo Stock Exchange indicates there are approximately 3,734 companies listed on the exchange. Some of the other facts and figures associated with the Tokyo Stock Exchange include:
- Those same 3,734 listed companies have a total market capitalization of $6.59 trillion (USD).
- Nearly 1 billion trades of stock are exchanged annually on the TSE (November 2020).
- In November 2020, an average of 3.9 billion shares, worth $8.5 billion (USD) was exchanged daily.
- The most important index traded on the TSE is the TOPIX, which includes the TOPIX, TOPIX 1000, TOPIX Small, TOPIX 500, TOPIX Mid, TOPIX Core 30, and TOPIX Large 70.
In addition to the TOPIX, the Nikkei 225 is recognized as one of the major international stock indices in the world today.
In November 2011, the TSE launched the Tdex+ System, which is an options and futures trading platform. This system claims to be able to process as many as 36,000 orders per second.
Tokyo Stock Exchange Holidays
The Tokyo Stock Exchange is open from Monday through Friday, and observes the following holiday schedule for the calendar years 2021 and 2020.
TSE 2021 Holiday Schedule
TSE 2020 Holiday Schedule
TSE Hours of Operation
The standard trading hours for most stock exchange products listed on TSE are 09:00 to 11:00 and 12:30 to15:00. Product-specific trading hours include:
- Japanese Government Bonds (JGBs) 13:00 to13:30 (09:30 to10:00)
- Foreign currency-denominated foreign bonds 13:30 to14:00 (10:00 to 10:30)
- Straight bonds 10:00 to11:00
- Equity derivatives 09:00 to11:00 and 12:30 to15:10 (09:00 to11:10)
- JGB derivatives 09:00 to11:00, 12:30 to15:00, and 15:30 to18:00
Note: The trading hours mentioned above are stated in local time Tokyo, Japan. The standard time zone for Tokyo is UTC / GMT +9 hours.
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