Tokyo Stock Exchange (TSE)

The Tokyo Stock Exchange, or TSE, is one of the largest stock markets in all of Asia, with over 3.5 billion shares exchanging hands each trading day.  The exchange supports the trading of bonds and derivatives in addition to equities.

History of the TSE

The history of the TSE dates back to the 1870's, when a securities system was established in Japan and public negotiating for bonds first began.  The Tokyo Stock Exchange Co., LTD was established on May 15, 1878, and trading on the exchange began in June of that same year.

Between August 10, 1945 and April 1, 1949, official trading on the exchange was suspended due to the war.  After several post-war reorganizations, the TSE emerged as the largest of the five stock exchanges in Japan, including the Sapporo Securities Exchange, Osaka Securities Exchange, Nagoya Stock Exchange, and Fukuoka Stock Exchange in addition to the TSE.

On July 1, 1969, the TSE introduced the TOPIX (Tokyo Stock Price Index), which is a composite index of all the domestic common stocks listed on the exchange.  The TOPIX is considered the best indicator of the financial condition of the Japanese stock market.

The TSE is a member of the Japan Exchange Group, Inc., which a is holding company with subsidiaries that also include the Osaka Securities Exchange Co., Ltd. (OSE), as well as Tokyo Stock Exchange Regulation (TSER), and Japan Securities Clearing Corporation (JSCC).

Facts and Figures

The latest report (July 2016) on the Tokyo Stock Exchange indicates there are approximately 3,533 companies listed on the exchange.  Some of the other facts and figures associated with the Tokyo Stock Exchange include:

  • Those same 3,533 listed companies have a total market capitalization of $4.98 trillion (USD).
  • Nearly 900 million trades of stock are exchanged annually on the TSE (July 2016).
  • In July 2016, an average of 3.5 billion shares, worth $23.9 million (USD) was exchanged daily.
  • The most important index traded on the TSE is the TOPIX, which includes the TOPIX, TOPIX 1000, TOPIX Small, TOPIX 500, TOPIX Mid, TOPIX Core 30, and TOPIX Large 70.

In addition to the TOPIX, the Nikkei 225 is recognized as one of the major international stock indices in the world today.

Tdex+ System

In November 2011, the TSE launched the Tdex+ System, which is an options and futures trading platform.  This system claims to be able to process as many as 36,000 orders per second.

Tokyo Stock Exchange Holidays

The Tokyo Stock Exchange is open from Monday through Friday, and observes the following holiday schedule for the calendar years 2016 and 2017.

TSE 2017 Holiday Schedule

Date Holiday
January 2, 2017 New Year's Day
January 3, 2017 Exchange Holiday
January 9, 2017 Coming of Age Day
March 20, 2017 Vernal Equinox
May 3, 2017 Constitution Memorial Day
May 4, 2017 Greenery Day
May 5, 2017 Children's Day
July 17, 2017 Marine Day
September 18, 2017 Respect for the Aged Day
September 22, 2015 Autumnal Equinox
October 9, 2017 Health and Sports Day
November 3, 2017 Culture Day
November 23, 2017 Labor Thanksgiving Day
December 23, 2017 Emperor's Birthday
December 29, 2017 Exchange Holiday

TSE 2016 Holiday Schedule

Date Holiday
January 1, 2016 New Year's Day
January 2, 2016 Exchange Holiday
January 3, 2016 Exchange Holiday
January 11, 2016 Coming of Age Day
February 11, 2016 National Foundation Day
March 20, 2016 Vernal Equinox
March 21, 2016 Holiday
April 29, 2016 Showa Day
May 3, 2016 Constitution Memorial Day
May 4, 2016 Greenery Day
May 5, 2016 Children's Day
July 18, 2016 Marine Day
August 11, 2016 Mountain Day
September 19, 2016 Respect for the Aged Day
September 22, 2016 Autumnal Equinox
October 10, 2016 Health and Sports Day
November 3, 2016 Culture Day
November 23, 2016 Labor Thanksgiving Day
December 23, 2016 Emperor's Birthday
December 31, 2016 Exchange Holiday

TSE Hours of Operation

The standard trading hours for most stock exchange products listed on TSE are 09:00 to 11:00 and 12:30 to15:00.  Product-specific trading hours include:

  • Japanese Government Bonds (JGBs) 13:00 to13:30 (09:30 to10:00)
  • Foreign currency-denominated foreign bonds 13:30 to14:00 (10:00 to 10:30)
  • Straight bonds 10:00 to11:00
  • Equity derivatives 09:00 to11:00 and 12:30 to15:10 (09:00 to11:10)
  • JGB derivatives 09:00 to11:00, 12:30 to15:00, and 15:30 to18:00

Note:  The trading hours mentioned above are stated in local time Tokyo, Japan.  The standard time zone for Tokyo is UTC / GMT +9 hours.

About the Author - Tokyo Stock Exchange (TSE) (Last Reviewed on September 1, 2016)