Single Stock Trading (ToSTNeT-1)
Investors are able to trade the minimum trading unit or more of a single stock with a designated counterpart (a trading participant) within 7% above or below the last price in the auction market (in case the amount obtained by multiplying the last price in the auction market by 7% is below JPY5, the range will be JPY5 above or below the last price in the auction market). The trading participant must specify matching conditions such as the counterpart (trading participant name), name of the stock, and number of shares. Orders are executed when price quotations match (cross orders from the same trading participant are immediately executed at the quoted price). With ToSTNeT-1, investors can minimize the impact of large orders and other transactions that are difficult to execute in the auction market.
Basket Trading (ToSTNeT-1)
Investors are able to trade a basket of a minimum of 15 stocks valued at least JPY100 million with a designated counterpart. Basket trading can be made at a price within 5% above or below the total price, calculated from the most recent prices of the stocks in the auction market. The trading participant specifies matching conditions such as the counterpart (trading participant name), names of the stocks, and number of stocks. Orders are executed when price quotations match, and cross orders from the same trading participant are immediately executed at the quoted price.
Closing Price Trading (ToSTNeT-2)
Trading participants can trade single stocks at the closing price or VWAP in the auction market on a first come, first served basis. ToSTNeT-2 enables investors to first check the closing price then trade single stocks in order to re-balance their portfolio, or to execute multiple stock transactions that do not meet basket trading criteria. It can also be used in cases when certain orders fail to be executed in the auction market (for example, if the investor received no allotment in the closing auction at the limit price, if the market closed at a special quote price resulting in no closing auction, or if the investor failed to acquire the targeted number of stocks in basket or VWAP trading.) ToSTNeT-2 is also available for repurchasing own shares.
Off-Auction Own Share Repurchase Trading (ToSTNeT-3)
ToSTNeT-3 is a system specifically for transactions in which listed companies reacquire their own shares. The buy side is reserved exclusively for the listed company itself, and sell lots equivalent to buy lots are distributed according to allocation methods prescribed by the TSE (described in the chart below) at 8:45am.