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.

On October 1, 2019, JPX expanded its business into commodity derivatives trading by acquiring Tokyo Commodity Exchange, Inc.

JPX Group
(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 financial 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.

Tokyo Commodity Exchange

Tokyo Commodity Exchange, Inc. (TOCOM) is a licensed commodity exchange under the Commodity Derivatives Act of Japan, which is engaged in the provision of market facilities for trading of commodity derivatives, physical commodities and commodity index futures.

About Derivatives Markets

OSE markets serve as venues for investors to trade financial 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.

TOCOM markets serve as venues for investors to trade commodity futures products, such as on Precious Metals, Energy, Rubber, and Agricultural products, and options on Gold futures. TOCOM’s gold market is the most liquid in East Asia and its Platinum market is the most liquid in the world. TOCOM Rubber is the established global benchmark.

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.* Derivatives products can be traded during both the day and night sessions.

  • 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

Japan Securities Clearing Corporation

In January 2003, Japan Securities Clearing Corporation (JSCC) was licensed in Japan as the first clearing organization to conduct a “Securities Obligation Assumption Service” (now called “Financial Instrument Obligation Assumption Service”) and started clearing services for transactions executed on Japanese stock exchanges. The birth of JSCC enabled the integration of clearing processes that used to be performed separately by individual stock exchanges, dramatically improving the efficiency and serviceability of the post-trade process in securities markets. Since its start, JSCC has steadily expanded the scope of its services, and now, in addition to listed products, JSCC provides clearing services for OTC derivatives (CDS and Interest Rate Swaps) and OTC Japanese Government Bond transactions as the Financial Instruments Clearing Organization.

For more information, please refer to the following link:

Company Profile (JSCC website)icon-block

Japan Commodity Clearing House Co., Ltd.

Japan Commodity Clearing House Co., Ltd. (JCCH) is the sole commodity clearing house
in Japan, providing clearing services for transactions in commodity markets on TOCOM and the Osaka Dojima Commodity Exchange.

For more information, please refer to the following link:

Company Profile (JCCH website)icon-block