Our Business

Overview

Japan Exchange Group, Inc. (JPX) was established via the business combination between Tokyo Stock Exchange Group and Osaka Securities Exchange on January 1, 2013.

JPX operates financial instruments exchange markets to provide market users with reliable venues for trading listed securities and derivatives instruments. In addition to providing market infrastructure and market data, JPX also provides clearing and settlement services through a central counterparty and conducts trading oversight to maintain the integrity of the markets. In the course of working together as an exchange group to offer a comprehensive range of services, we continue to make every effort to ensure reliable markets and create greater convenience for all market users.

JPX Group

Trade/corporate names were changed

(note)
  • ・Osaka Securities Exchange was renamed Osaka Exchange on March 24, 2014.
  • ・Tokyo Stock Exchange Regulation was renamed Japan Exchange Regulation on April 1, 2014.
  • Tokyo Stock Exchange, Inc., Osaka Exchange, Inc., Japan Exchange Regulation, and Japan Securities Clearing Corporation are JPX subsidiaries. Japan Securities Depository Center, Inc. is a JPX affiliate.

Business Model

JPX provides a fair, secure, and reliable market infrastructure, and in return receives fees from securities firms, issuers, information vendors, and other market users. Our main revenue streams are trading services revenue, clearing services revenue, listing services revenue, and information services revenue. In terms of cost and revenue factors, market expansion and growth boost income while expenses remain relatively stable and unaffected by changes in market condition.

Business Model

Tokyo Stock Exchange

Tokyo Stock Exchange, Inc. (TSE) is a licensed financial instruments exchange under the Financial Instruments and Exchange Act of Japan, which is engaged in the provision of market facilities for trading of securities, publication of stock prices and quotations, ensuring fair trading of securities and other financial instruments, and other matters related to the operation of exchange financial instruments markets.

About Cash Markets

We operate and maintain 1st Section, 2nd Section, Mothers and JASDAQ to be central to TSE markets.
TSE has established its position as Japan’s central market, and is ranked the third in the world* and the first in Asia* by market capitalization.

In an effort to accommodate varied needs of investors, we are promoting to diversify our product lineups such as ETFs and ETNs, which will allow investors to take advantage of more diversified asset allocation at smaller costs.

We serve as a one-stop market and offer a wide variety of ETFs and ETNs linked to Japanese and foreign stock price indices, commodity indices such as precious metal and agricultural products, REIT indices, and leveraged and inverse indicators calculated by multiplying the daily fluctuation rate of the underlying indicators.

We consider it extremely important and essential to ensure a stable system operation to maintain stability and reliability in market by keeping a trading platform smoothly.

To accommodate varied needs of users in response to diversified and sophisticated trading methods due to advancements in financial information technology and listing of new financial instruments etc. in an appropriate and flexible manner, it is necessary to develop and improve the system infrastructure.

We operate the cash market trading system “arrowhead” which combines low latency, high reliability and scalability. With the best latency level in order processing and data distribution as well as the synchronized 3-node data protection system to restore trading information such as orders, executions, and order books, “arrowhead” positions itself as one of the best trading system of the world.

  • The market capitalization is as of end of December, 2016.

Osaka Exchange

Osaka Exchange, Inc. (OSE) is a licensed financial instruments exchange under the Financial Instruments and Exchange Act of Japan, which is engaged in the provision of market facilities for trading of derivatives, publication of prices and quotations, ensuring fair trading and other financial instruments, and other matters related to the operation of exchange financial instruments markets.

About Derivatives Markets

OSE markets serve as venues for investors to trade derivatives products, such as Index Futures, Index Options, JGB Futures, Options on JGB Futures, and Single Stock Options. These products can be traded during the day and night sessions.

Index Futures and Index Options traded at OSE markets are based on domestic and foreign indices. Nikkei 225 Futures, Nikkei 225 mini, Nikkei 225 Options and TOPIX Futures, in particular, are the leading derivatives products in Japan.
Additionally, for JGB futures trading, price movements in 10-year JGB Futures serve as indicators of long-term interest rates in Japan due to its high liquidity.

To improve convenience for investors, OSE will continue to strengthen the competitiveness of our derivatives markets by introducing new products based on domestic and foreign indices and reviewing our trading rules.*

  • For the latest updates on OSE markets, please refer to the following link:
Derivatives

Stable system operations are essential to achieve smooth trading and maintain a stable and reliable market. The IT infrastructure, including the trading system, requires constant development to meet the needs of market users by appropriately and flexibly responding to diversified and sophisticated trading methods brought about by advancements in financial information technology and the listing of new products. As such, we adopted “J-GATE”, a derivatives trading system that boasts capabilities of the highest global standards. By advancing the full utilization of the system’s capabilities, we are able to provide highly reliable and convenient markets for investors.

Japan Exchange Regulation

Japan Exchange Regulation (JPX-R) is an independent self-regulatory body dedicated to maintaining integrity in the Japanese securities markets. Established under Japan Exchange Group (JPX), JPX-R specializes in self-regulatory operations such as listing examination, listed company compliance, market surveillance, and inspections and examinations of trading participants (broker-dealers qualified to access directly the trading platforms of Tokyo Stock Exchange or Osaka Exchange).

Company Brochure icon-pdf
For more information on Japan Exchange Regulation