Trading

Overview

Update : Oct. 31, 2014

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Trading Sessions

All stock transaction methods are prescribed in the TSE "Business Regulations". These "Business Regulations" set out the rules for ensuring fair trading in the Exchange market, such as kinds of transactions, bids and offers of trading, unit of trading, and methods of transaction.

(1) Trading Hours
  • The morning trading session:
    9:00 - 11:30 a.m.
  • The afternoon trading session:
    12:30 - 3:00 p.m.

(2) Kinds of Stock transactions

  • "Regular" transactions
    Settlement shall be made on the third business day after the day of transaction (T+3);
  • "Cash" transactions
    Settlement shall be made on the day of transaction. "Cash" transactions are available to cross trading only.
  • "When issued" transactions
    "When issued" transactions are used for new shares issued by companies in capital increases and stock splits.

    These transactions shall be made during the period from the ex-rights date (or the day following the last day of subscription period) until a TSE-designated date, occurring on and after the day before the issuance of stock certificates. A margin deposit (30% of transaction value) is required.

(3) Tick Size
TOPIX100 Constituents

Price per share (yen) Tick Size (yen)
up to 1,000 0.1
up to 5,000 0.5
up to 10,000 1
up to 50,000 5
up to 100,000 10
up to 500,000 50
up to 1,000,000 100
up to 5,000,000 500
up to 10 million 1,000
up to 50 million 5,000
over 50 million 10,000

Other Issues
Price per share (yen) Tick Size (yen)
up to 3,000 1
up to 5,000 5
up to 30,000 10
up to 50,000 50
up to 300,000 100
up to 500,000 500
up to 3 million 1,000
up to 5 million 5,000
up to 30 million 10,000
up to 50 million 50,000
over 50 million 100,000

(4) Trading Unit of Stocks
The number of shares which constitute one unit is determined by the Constitution of each listed company in accordance with Article 188 of the Companies Act (2005).

(5) Types of Orders

  • Market orders
  • Limit orders

(6) Special Bid/Ask Quotes
When there are bids or offers which are outside the reasonable price range from the standpoint of price continuity, TSE indicates a "special bid quote" or a "special ask quote" in order to notify the public of the existence of such orders. The special bid/ask quotes maybe renewed at intervals of 3 minutes or more as deemed appropriate by TSE within the price parameters (*1) set out by TSE.

(7) Sequential trade Quotes
In the case of continuous increase / decrease in execution prices of a single order that exceeds twice the range of the special quote parameters from the previous price, a "sequential trade quote" will be displayed at the said price, and it shall be subject to the Itayose method.

(8) Daily Price Limits
TSE has established daily price limits (*2), based on stocks' previous day's closing prices, beyond which prices may not swing. These limits protect investors from distorted price formation as a result of a speculative market or when the supply/demand balance is broken.

Trading Participants

Securities firms trading securities in the market of the Exchange

Transaction Methods

  • (1) Auction market principles: "price priority" & "time priority"
  • (2) "Itayose" method: for opening trades, etc."Zaraba" method: continuous trading
    •    Itayose method
      Orders to be executed in following order:
      • All market orders
      • All limit orders to sell (buy) at prices lower (higher) than the anticipated transaction price
      • The entire amount of limit orders to sell or buy at the anticipated transaction price

*1 Renewal of Special Quotes Parameters

Last Special Quote (yen) Parameters (yen)
Less than 200 ±5
Less than 500 8
Less than 700 10
Less than 1,000 15
Less than 1,500 30
Less than 2,000 40
Less than 3,000 50
Less than 5,000 70
Less than 7,000 100
Less than 10,000 150
Less than 15,000 300
Less than 20,000 400
Less than 30,000 500
Less than 50,000 700
Less than 70,000 1,000
Less than 100,000 1,500
Less than 150,000 3,000
Less than 200,000 4,000
Less than 300,000 5,000
Less than 500,000 7,000
Less than 700,000 10,000
Less than 1 million 15,000
Less than 1.5 million 30,000
Less than 2 million 40,000
Less than 3 million 50,000
Less than 5 million 70,000
Less than 7 million 100,000
Less than 10 million 150,000
Less than 15 million 300,000
Less than 20 million 400,000
Less than 30 million 500,000
Less than 50 million 700,000
50 million or more   1 million
Note:This table also used as the yardstick for the maximum trade-to-trade price change.

*2 Daily Price Limit

Previous Day's Closing Price/Special Quote (yen) Daily Price Limits (yen)
Less than 100 ±30
Less than 200 50
Less than 500 80
Less than 700 100
Less than 1,000 150
Less than 1,500 300
Less than 2,000 400
Less than 3,000 500
Less than 5,000 700
Less than 7,000 1,000
Less than 10,000 1,500
Less than 15,000 3,000
Less than 20,000 4,000
Less than 30,000 5,000
Less than 50,000 7,000
Less than 70,000 10,000
Less than 100,000 15,000
Less than 150,000 30,000
Less than 200,000 40,000
Less than 300,000 50,000
Less than 500,000 70,000
Less than 700,000 100,000
Less than 1 million 150,000
Less than 1.5 million 300,000
Less than 2 million 400,000
Less than 3 million 500,000
Less than 5 million 700,000
Less than 7 million 1 million
Less than 10 million 1.5 million
Less than 15 million 3 million
Less than 20 million 4 million
Less than 30 million 5 million
Less than 50 million 7 million
50 million or more   10 million

Off-Market Transactions in Listed Securities

  • Securities firms (including non-trading participants) are prohibited from executing any customer orders for listed securities off the exchange market unless specifically instructed by customers to do so.
  • When executing customers' orders off the exchange market, securities firms are required to observe the price parameters set forth by the Japan Securities Dealers Association during the trading hours of the exchange specified by customers.


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