Update : Oct. 29, 2010
The following is a breakdown of the 2nd quarter financial results of Tokyo Stock Exchange Group, Inc. for the fiscal year ending March 2011.
Trading participation fees were down 7.3% and income from securities settlement was down 7.4% from the same period of the previous year due to an approximate 9% decrease in stock trading value from the previous year.
Listing fees were down 14.8% from the previous year. This was attributable to the fact that the amount of fund raising through public offerings, etc. by listed companies decreased approximately 30% from the previous year when a series of large-scale capital increases through public offerings were conducted by listed companies, such as Sumitomo Mitsui Financial Group, Inc. and TOSHIBA CORPORATION. Income from information services was up 2.4% from the previous year due to an increase in the number of real-time individual terminals. Other operating income was up 3.5% from the previous year due to an increase in the Co-Location service fees. As a result, overall operating revenues were down 5.8% to JPY28.3 billion from the previous year.
On the other hand, operating expenses were down 2.0% to JPY21.8 billion from the previous year. While there was an increase in depreciation costs related to the launch of arrowhead, expenses such as labor costs and system maintenance/operating costs decreased.
As a result, operating profit during the quarter was down 16.6% to JPY 6.52 billion from the previous year. Ordinary profit adjusted by the receipt of dividend income from Singapore Exchange Limited, etc. was down 14.5% to JPY 7.35 billion from the previous year. Net income for this quarter was down 21.3% to JPY 4.49 billion from the same quarter of the previous year in which extraordinary profits were generated.
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Tokyo Stock Exchange, Inc. (TSE) will set up a new "Derivatives Sales" team within the Derivatives Department on November 1, 2010. The purpose of this team will be to actively promote the sales of TSE's derivatives, such as futures and options, in conjunction with the scheduled migration of futures trading to the Tdex+ system in the autumn of 2011 as part of TSE’s continuing efforts to invigorate and enhance the convenience of the futures market.
The team aims to expand the base of investors and improve the liquidity of the derivatives market. In cooperation with other departments, such as the IT-related departments, Information Services Department, and Co-Location Promotion Office, the new team plans to promote derivatives sales to gain new investors including overseas high frequency traders and individual online investors.