TSE News

ETF trading fees will be donated to the Great East Japan Earthquake - ETF Trading to Aid Recovery -

Update : Apr. 28, 2011



Tokyo Stock Exchange Group, Inc. (hereafter "TSE Group") will donate an amount equivalent to the trading fees paid to Tokyo Stock Exchange, Inc. (hereinafter "TSE") for trading in ETFs(*1) and ETNs(*2) in support of recovery from the Great East Japan Earthquake. This decision was made after consideration of measures to allow market participants to contribute to the recovery efforts through the market.

TSE Group has already made a donation to recovery efforts and flexible application of listing rules are currently being implemented for disaster-affected listed companies as well as prospective listed companies. In addition to these independent efforts, as a market operator, TSE Group has examined ways to involve market participants in our contribution to the recovery.

ETFs are simple products with price movement that is easy to understand, have the effect of diversifying an investment portfolio, and can be traded easily with small amounts of funds by a wide variety of investors, from those new to investment to professional investors. Furthermore, thanks to the efforts of many ETF providers, etc., the product lineup on the TSE ETF market reached the landmark of 100 listed issues in the last fiscal year and continues to grow today. TSE decided to donate the amount equivalent to the trading fee from ETF trading during the period from April through September 2011 in our continued efforts to aid recovery. This will enable TSE to do our part in a combined effort together with a broad spectrum of market users including investors. In addition, the trading fees from ETN trading will also be donated after the listing framework and system for ETNs has been established.

TSE Group will continue to strive to broaden the ETF and ETN product lineup and increase the convenience of the market for all investors.

  • (*1)ETF: ETF is the abbreviation of "Exchange Traded Fund". ETFs are listed investment trusts created to track a specific index or price. ETFs are available for trading on the TSE market in the same way as stocks. Its price movement tracks a specific index, etc. and is easily understood. Being investment trusts, they also allow for portfolio diversification. ETFs are relatively low cost and a wide variety of products available for trading. ETFs are issued in the form of beneficiary certificates backed by underlying assets, such as stocks or commodities which are held by a financial institution, such as a trust bank, that is entrusted by another financial institution
  • (*2)ETN: ETN is the abbreviation of "Exchange Traded Note". A financial instrument similar to ETF, ETNs are created to track a specific indicator or price. Instead of underlying assets managed by a financial institution, ETNs are issued in the form of bonds which are guaranteed by a financial institution of high creditworthiness to track a specific indicator such as a stock price index. Unlike an ETF, while investors need to bear in mind that an ETN includes the credit risk of the financial institution issuing the bond, an ETN allows access to stocks or rare metals which may not be held as underlying assets under existing laws and regulations.


Corporate Communications Department
Media Relations Group
℡: +81-3-3666-1361

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