Trading
Overview
Update : Nov. 24, 2011
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
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(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) Minimum Price Fluctuations
| Price per share (yen) | Minimum price fluctuations (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 221 of the Commercial Code (2001).
(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
-
Itayose method
| 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 | |
| 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.