Tokyo Stock Exchange, TSE

Tokyo Stock Exchange is among 5 largest stock exchanges in the world, with more than 2,000 companies listed and by aggregate market capitalization of more than $3 trillion.

Tokyo Stock Exchange or shortly TSE is located in Tokyo, Japan and is the one of the largest stock exchanges in the world by aggregate market capitalization. As of 30 April 2010, TSE had 2,299 listed companies with a combined market capitalization of US$3.7 trillion and average daily turnover of US$19.2 billion.

89 domestic and 19 foreign securities companies participate in the TSE trading.

TSE Trading Hours

Tokyo Stock Exchange's normal trading sessions are from 09:00 am to 11:00 am and from 12:30 pm to 15:00 pm on all days of the week except Saturdays, Sundays and holidays declared by the Exchange in advance.

Product-specific trading hours include:

  • Japanese Government Bonds (JGBs): 13:00 to 13:30 (09:30 to 10:00)
  • Foreign currency-denominated foreign bonds: 13:30 to 14:00 (10:00 to 10:30)
  • Straight bonds: 10:00 to 11:00
  • Equity derivatives: 09:00 to 11:00 and 12:30 to 15:10 (09:00~11:10)
  • JGB derivatives: 09:00 to 11:00, 12:30 to 15:00 and 15:30 to 18:00

The trading hours mentioned above are stated in local time Tokyo, Japan. The Standard time zone for Tokyo is UTC/GMT +9 hours.

TSE Trading Segments

Stocks listed on the TSE are separated into:

  • First Section for large companies
  • Second Section for mid-sized companies
  • Mothers section for high-growth startup companies (Market of the High-Growth and Emerging Stocks)

As of April 30, 2010, there are 1,685 First Section companies, 446 Second Section companies and 186 Mothers companies.

Main Indices Tracking TSE

Main indices that are mainly used in to track down the performance of the Tokyo Stock Exchange are:

  • Nikkei 225: based on companies that are selected by Japan's largest business newspaper - the Nihon Keizai Shimbun
  • Topix Index: based on the share prices of the First Section Companies
  • J30 Index: based on large industrial companies that are maintained by Japan's major broadsheet newspapers

TSE History

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. Initially TSE was a physical stock exchange where trading took place by the open outcry system.

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 including the Sapporo Securities Exchange, Osaka Securities Exchange, Nagoya Stock Exchange and Fukuoka Stock Exchange in addition to the TSE.

Between the periods 1983 to 1990 TSE witnessed an extraordinary growth when market capitalization occupied about 60% of the market capitalization of the whole world. Although the performance of the TSE has fallen since then, even now it ranks the third largest in terms of the market capitalization of the listed shares.

In April 30, 1999 TSE switched over to an electronic mode of transaction. In 2001, TSE took the form of a corporation.

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