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April 2009

Update : May 08, 2009

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1. Financial Results for FY Ended March 2009

Tokyo Stock Exchange Group, Inc. (TSE Group) has decided to write down its shares of Singapore Exchange Ltd. (SGX)

The breakdown of the financial results for the fiscal year which ended March 2009 is as follows.

Due to a decrease in trading values in the market, trading participation fees were down 24% on a year-on-year basis, and listing-related revenue was down 21% from the same period of the previous year due to a decrease in IPOs. On the other hand, one of the subsidiaries of Tokyo Stock Exchange Group, Inc. (hereafter "TSE Group"), TOSHO SYSTEM SERVICE CO., LTD. generated revenue through its system development, etc. to dematerialize stock certificates. As a result, operating revenue was down approximately 10% from the previous year, to JPY 67 billion.

On the other hand, due to an increase in system-related expenses such as depreciation costs, operating expenses were up 10% from the previous year, to JPY 52.9 billion.

As a result, operating profits were down 50% to JPY 14.1 billion and ordinary profits were down 47% to JPY 16.2 billion on a year-on-year basis.

In addition, the TSE Group recorded approximately JPY 20.7 billion of paper losses related to shares of Singapore Exchange Ltd. Therefore, net loss for the fiscal year was JPY 3.696 billion.

2. Selection of Candidates for New Board Members, Executive Officers, etc.

The TSE Group, Tokyo Stock Exchange, Inc. (TSE), and Tokyo Stock Exchange Regulation (TSER) have selected candidates for the positions of new board members, executive officers, governors, etc., respectively. Members of the board, executive officers, governors, etc. will be reselected in June 2009.

Board members of the TSE Group and board members/auditors of the TSE will be selected at the general shareholders' meeting, respectively, while governors of TSER will be selected at the general members' meeting. These meetings will be held in June 2009. Executive officers of the TSE Group and the TSE are scheduled to be selected at the board of directors meeting after said shareholders' meeting.

3. Reviewing of Trading Rules upon Launch of arrowhead

The TSE has decided to implement a review of the trading rules in conjunction with the creation of arrowhead (the Next Generation Trading System).

The TSE has been developing arrowhead with the aim of realizing the world-highest level of latency, reliability, and scalability. In tandem with the development of arrowhead, the TSE proceeded with the review, soliciting opinions and comments from trading participants in order to simplify the trading rules and business operations as well as revise the rules in order to facilitate smooth price formation and improvement in liquidity. As a result, the TSE has finalized the review by focusing on the following two points:

(1) Reviewing the allocation rules when bids/offers are made simultaneously and abolishing half-day holidays to simplify trading rules and business operations
(2) Enhancing user-friendliness by reducing tick sizes, expanding the daily price limits on bids/offers and special quote renewal intervals, and relaxing requirements for matching orders at the time of opening and closing transactions at the daily price limit in order to facilitate smooth price formation and improvement in liquidity

The review is scheduled to be implemented on January 4, 2010 when arrowhead activates. However, half-day holidays will be abolished on December 30, 2009, the last trading day of the year.

[For more information]
Tokyo Stock Exchange to revise trading rules at the time of launching "arrowhead"(TSE News 2009/4/28)

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