Tokyo stock exchange, Financial Management

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Tokyo Stock Exchange

In the 1870s, a securities system was introduced in Japan and public bond negotiations began. This resulted in a demand for public trading institution, which led to the enactment of the Stock Exchange Ordinance. Based on this law, the Tokyo Stock Exchange Co., Ltd. was established on May 15, 1878 and trading began in June. During the World War II, all the stock exchanges were unified and Japan Securities Exchange was established. On April 1, 1949, Tokyo Stock Exchange in its present form was founded. On July 1, 1969, TOPIX (Tokyo Stock Price Index) was launched. During the year 1982, Computer-assisted Order Scrutiny and Execution System (CORES) was introduced. Foreign companies took TSE's membership on February 1, 1986. Trading in TOPIX options and futures started during 1988-89.

The depository system was started in 1991, and trading was put in a better order. Trading in stock index futures and equity options started during 1997-1998. Tokyo Stock Exchange Wide Area Network (WAN) was introduced on June 1, 1999.
The Tokyo Stock Exchange maintains market for stock and related instruments like futures and options. TSE's role as a recognized and popular Stock Exchange has recently enhanced due to advances in international capital flow.

The Tokyo Stock Exchange functions as a self-regulated and a non-profit organization under the provisions of the Securities and Exchange law. The management of TSE was run by a self-regulated body of members involved with the market. The major objective of the Tokyo Stock Exchange is to provide a market-place for secondary market operations. The exchange provides real-time trading on the Exchange floor and completes transactions carefully. The listing process and monitoring of securities is done by the Stock Exchange officials. TSE always maintains a higher standard for the safety of investors and for protecting this it can suspend trading or can delist the security. In order to ensure investor protection, and fair and transparent transactions, the TSE necessitates accurate, swift and fair disclosure of company and security information. The TSE is a membership organization of securities companies. As a constituent of a prominent public exchange, members are expected to maintain highest standards.


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