Update : Dec. 28, 2011
Tokyo Stock Exchange (TSE) and NYSE Euronext signed a "Master Agreement" regarding mutual connection between TSE's arrownet® and NYSE Euronext's Secure Financial Transaction Infrastructure (SFTI®) on December 6th as a result of collaboration initiated by an earlier LOI signed by both parties on March 1st, 2011. The connection between the two networks has been established as of this agreement.
TSE and NYSE Euronext are set to launch new services, including mutual access to both exchange operators' markets using the existing network environments for trading participants, investors, service providers and other users of both networks in anticipation of TSE's new arrownet services planned for the coming spring.
Furthermore, NYSE Technologies, the technology-arm of NYSE Euronext, is scheduled to launch a TSE market data dissemination service in December 2011 using this connection.
For more information:
TSE and Korea Exchange (KRX) signed a Memorandum of Understanding (MOU) to further strengthen the cooperative relationship between both exchanges on December 8th.
Based on this MOU, TSE and KRX have made the prices of stocks listed on both exchanges mutually available on their websites in order to promote greater capital circulation between the two markets. Additionally, they have begun discussions regarding the development of infrastructure to facilitate more convenient order placement and market information acquisition by participants in both markets.
Furthermore, TSE and KRX will examine methods to promote mutual-listing of ETFs and shared derivatives products, while also pursuing the creation of highly convenient trading environments and cost reductions through cooperative study of IT systems, which form the foundation of the exchange business.
In advancing these initiatives, TSE Group and KRX will engage in medium-to-long term staff exchange in order to establish a thorough deliberation structure, and facilitate prompt implementation.
For more information:
In its support of the IR activities of listed companies and to provide the world's investors with insight into the appeal of Japanese companies and the excellent quality of the Japanese economy and market, TSE launched its overseas PR magazine "Evolving Japan" on December 12th.
TSE will actively disseminate information on the "current situation in Japan" including the post-quake Japanese economic recovery and Japanese companies with world-class technological prowess through this overseas PR magazine. In the course of our efforts, we hope to remind international investors of the appeal of Japanese companies as well as the excellent quality of the Japanese economy and its market. We hope that this will, in turn, lead to the increased competitiveness of Japan's financial and capital market.
TSE Magazine "Evolving Japan" Site:
On December 13, TSE began offering an innovative new web service – "TSE Market Impact View (β Version)" –which converts mass quantities of data into easy to understand, more visible analytical information.
This web service uses full order book data and statistical methods to provide new information, such as biases towards bids or offers, order book depth, and other analytical data.
This service is currently in a free trial phase available to all users.
For more information:
From the perspective of cultivating new industries, TSE implemented measures in March 2011 aimed at invigorating the Mothers market for growing companies. In light of the revitalization of current industries, support for small/medium-sized companies is an urgent issue as these companies serve an extremely important role in the Japanese economy as they have cutting edge technology and are important sources of employment.
Given these circumstances, TSE is engaging in initiatives to provide leading small/medium companies with flexible fund-raising opportunities as they pursue further technological development and overseas expansion, as well as contribute to the continuous growth of the Japanese economy. Furthermore, in order to list such small/medium companies and provide investors with attractive investment opportunities, TSE will implement listing rules and systems related initiatives aimed at invigorating IPOs. Such initiatives include revisions to listing examination criteria pertaining to business continuance/profitability and easing of market capitalization criteria for direct listing to the 1st Section Market.
Recently, a series of incidents have been exposed where the actions of listed company management have caused serious damage to their corporate value. In response to these events, domestic and overseas investors have raised doubts over the trust of listed companies as a whole.
In order to assuage these concerns regarding listed companies and restore the credibility of the securities market, TSE had decided to examine revisions to the listed rules related to corporate governance.
The primary points to be discussed are:
1. Clarifying the independence of 1 or more independent director(s)/auditor(s) appointed to every listed company according to the TSE rules
2. Clarifying the "expected role of independent directors/auditors"
More details will be released as these discussions progress.
For notes from the press conference (by Mr.Atsushi Saito, President & CEO, Tokyo Stock Exchange Group, Inc., on December 20, 2011)), please refer to the following PDF.
|Press Conference Notes for December 2011|