Tokyo Stock Exchange extends trading day


Following a system failure a year ago, the Tokyo Stock Exchange (TSE) plans to extend its trading day by 30 minutes.

If the proposed extension goes ahead, it will be the first such change to cash stock trading hours in more than a decade. The last time the exchange’s closing hours were extended was in 1954, when they changed from 2:00 p.m. to 3:00 p.m. local time.

The extension means the market would close half an hour later at 3:30 p.m. local time.

TSE currently trades between 9:00 a.m. and 3:00 p.m. local time, with a lunch break between 11:30 a.m. and 12:30 p.m.

He began discussing the possibility of extending trading hours after a system failure in October 2020, which resulted in trading being suspended for the entire day.

The proposed extension aims to secure trading opportunities on the day a system failure occurs and improve overall resilience.

Since trading hours are much shorter than in Europe, USA and other Asian countries, their extension will provide investors with increased trading opportunities and improve the convenience of the market.

“It was inevitable that this would happen to align TSE with other market centers in Asia that have longer trading hours,” said Serdar Armutcu, e-commerce manager at Mita Securities in Tokyo. Armuctu expects the extended trading hours to attract additional liquidity to the exchange.

The extension will not only improve resilience, but also enhance the functionality and competitiveness of Japanese markets globally in the medium to long term.

TSE last changed its trading hours in 2011 when it reduced its lunch break from 30 minutes to one hour currently.

In 2014, a previous recommendation for the exchange to consider adopting an evening trading session did not result in any change. Traditional brokerages who opposed longer hours due to rising costs lobbied against the suggestion, resulting in plans being scrapped.

Along with the extension of trading hours, TSE will also discuss the introduction of a five-minute closing auction, which has been adopted by several foreign exchanges, including the London Stock Exchange, to determine the closing price. of each action.

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