The world’s first institutional futures exchange: "Dojima Rice Exchange"

Dojima Rice Exchange

Dojima Rice Exchange

The origin of securities exchanges stems from Edo Period, when the exchange for rice & crop was established in Osaka, center of Japanese economy.

Each prefecture set up its own warehouses in Osaka for shipping & preservation of their rice (to be taxed by the government), and sold them to merchants. One of the most famous merchants was "Yodoya", which was based upon the southern part of Yodoyabashi area. Some other merchants gradually gathered to create one market.

This market was called "Yodoya-Komeichi", which was the first securities trading in the nation.

Later on, the market was moved to Dojima in 1697 and officially approved as "Dojima Rice Exchange" by Japan's shogunate government in 1730. At that time, rice futures trading, the trades recorded and settled in books of accounts, was mainly conducted, and it is known to be the world’s first institutional futures exchange.

Dojima Rice Exchange (13 languages) (https://www.jpx.co.jp/dojima/)icon-block

The chronological table of Osaka Securities Exchange Co.,Ltd.

May 1878 Stock exchange regulation enacted.
Jun. 1878 Osaka Stock Exchange Co., Ltd. established.
Aug. 1878 Started trading.
Jun. 1879 Trading of shares of Osaka Stock Exchange started as the first stock trading.
Sep. 1922 Short-term settlement trading started.
Osaka Stock Exchange
Osaka Stock Exchange around 1899
Apr. 1935 "New Market Building" completed.
New Market Building completed
Jun. 1943 Became the Osaka Division of the Japan Securities Exchange during the Pacific War.
(Dissolved in Apr. 1947.)
Aug. 1945 Japan Securities Exchange suspended operations.
Apr. 1949 Osaka Securities Exchange established.
Equity trading started (in May 1949).
Jun. 1951 Credit transaction system introduced.
Apr. 1956 Bond market opened.
Oct. 1961 Second section for stocks established.
Oct. 1966 Trading in "Government Bond" started.
May 1970 Convertible bond market opened.
Oct. 1973 Became an associate member of the Federation Internationale des Bourses de Valeurs (FIBV).
(WEF in 2001: World Federation of Exchange)
Sep. 1974 Computerized Market Information System launched.
Jun. 1983 Became a member of EASEC.
(AOSEF in 1990: East Asian and Oceanian Stock Exchanges Federation)
Nov. 1983 "Special Designated Issues" System, called "New Second Section", introduced.
Dec. 1984 Ten Minute Earlier Opening System for representative issues selected from among the first section stocks introduced.
Jun. 1987 Equity futures trading started.
Trading in "Osaka Stock Futures 50 (OSF50)" started.
(Trading of "OSF50" was ceased on Mar. 20, 1992.)
Sep. 1988 Trading in "Nikkei Stock Average Futures (Nikkei 225 Futures)" started
Trading in Nikkei Stock Average Futures (Nikkei 225 Futures) started
Oct. 1988 Computer-assisted trading system for "OSF50" and "Nikkei 225 Futures" began operation.
Jun. 1989 Trading in "Nikkei Stock Average Options (Nikkei 225 Options)" started.
Dec. 1989 Computer-assisted trading system for "Nikkei 225 Options" began operation.
1990 Trading value of "Nikkei 225 Futures" became the highest in the world, exceeding "S&P 500 Futures", CME.
Feb. 1991 Computer-assisted trading system for stocks began operation.
Computer-assisted trading system for stocks began operation
May 1991 Became a member of the IAOECH.
(IOMA in 1993:lnternational Options Markets Association)
1991 Trading value of "Nikkei 225 Options" became the highest in the world, exceeding "S&P 100 Options", CBOE.
Dec. 1991 Country fund market opened.
Mar. 1992 "OSF 50" ceased trading in its futures contracts.
Apr. 1992 The Japan Securities Depository Centre (JASDEC), Osaka Office began its operation at the OSE.
Feb. 1994 Trading in "Nikkei Stock Index 300 Futures and Options (Nikkei 300 Futures / Options)" started.
Trading in Nikkei Stock Index 300 Futures and Options (Nikkei 300 Futures / Options) started
Oct. 1994 The Exchange became an affiliate member of the International Organization of Securities Commissions (IOSCO).
May 1995 Trading in "Nikkei 300 Stock Index fund" started.
Jan. 1996 "New Market", a system with "Issues listed under alternative listing criteria",introduced.
Apr. 1996 "Nikkei 300 Futures" Inter-month Spread Trading started.
New trading platform (for stocks and futures) launched.
Oct. 1996 Foreign stock market established.
May 1997 "Nikkei 225 Futures" Inter-month Spread Trading started.
Jul. 1997 Equity Options Trading started.
Dec. 1997 Cross Trading System (for large block trades, execution at closing price and basket trades) started.
Jun. 1998 Trading in "Sector Index Futures and Options" started.
(Trading of these products was ceased on Nov. 30, 2000.)
Dec. 1998 New Market Section established.
Jan. 1999 "J-NET Market" opened.
J-NET Market opened
Apr. 1999 Launched fully automated computerized trading system for stocks, futures, and options.
Jul. 1999 Full computerization of trading at the OSE was completed.
Nov. 1999 Full computerization of trading at the OSE was completed.
Non-Auction Large Block Trades for Stock Index Futures and Options started.
Feb. 2000 "Private Finance Initiative (PFI) market" established.
May 2000 "Nasdaq Japan Market" established.
(Trading on "Nasdaq Japan Market" started on Jun. 19, 2000.)
Trading on Nasdaq Japan Market started
Jun. 2000 Tokyo branch office opened.
Oct. 2000 SPAN® introduced.
Nov. 2000 Trading in "Sector Index Futures and Options" ceased.
Dec. 2000 "OptiMark Market" opened.
(Trading on the Market was ceased on Jun. 26, 2001)
Mar. 2001 OSE merged with Kyoto Stock Exchange.
Apr. 2001 OSE demutualized.
Established foreign stock market for Nasdaq Japan.
May 2001 DVP settlement system was introduced.
Jun. 2001 "ETFs Market" established.
(Started trading on Jul. 13, 2001)
Dec. 2001 "Venture Funds Market" established.
(Started trading on Jan. 15, 2002)
Jul. 2002 "FTSE Japan Index Exchange Traded Fund (ETF)" started trading.
"DJIA™ Futures", "MSCI JAPAN Index(SM) Futures" and "FTSE™ Japan Index Futures" started trading.
Nov. 2002 Became a member of ISG (Intermarket Surveilance Group).
Dec. 2002 Name change of the "Nasdaq Japan Market" to Nipon New Market- "Hercules".
Name change of the Nasdaq Japan Market to Nipon New Market-Hercules
Jan. 2003 Debt assumption operation started as a derivatives clearing organization.
Designating Japan Securities Clearing Corporation as a clearing organization of equities etc.
Apr. 2003 New Market Section abolished. All the issues were transferred to Nippon New Market - "Hercules" (Growth section).
IPO Transaction Participant introduced.
Jul. 2003 Starting the calculation and publication of "Hercules Indices".
Dec. 2003 Listing rules for REITs introduced.
(Started trading on May 17, 2004)
Apr. 2004 Listed OSE shares on Nippon New Market - "Hercules".
May 2004 IOMA (International Options Market Association) held in Osaka.
Feb. 2005 Derivatives clearing system launched.
Apr. 2005 Trading in "RN Prime Index Futures" started.
Dec. 2005 Participated in "TDnet system".
Jan. 2006 New trading platform (for Hercules-listed domestic stocks) launched.
Feb. 2006 New Trading Platform (for all products) launched.
Jul. 2006 Setting up Self-Regulation Committee (internal committee of board meeting).
Trading in "Nikkei 225 mini" started.
Feb. 2007 "J-NET trading" for Securities Options introduced.
Mar. 2007 Listing rules for "Commodity price linked/ foreign price index linked Exchange Traded Fund (ETF)" introduced.
Aug. 2007 "Gold-Price-Linked Exchange Traded Fund" started.
Sep. 2007 Evening session trading (from 16:30 to 19:00 for index futures/ options) started.
Oct. 2007 "SSE 50 Index linked Exchange Traded Fund" listed.
Setting up Self-Regulation Committee based on "Financial Instruments and Exchange Act".
Mar. 2008 New trading screening platform launched.
Backup center went into operation.
Sep. 2008 20th anniversary of the start of the Nikkei 225 Futures.
Signing Memorandum of Understanding with CME Group.
Currency linked Exchange Traded Fund listed.
Covered Warrants listed.
Oct. 2008 Extending evening session trading hours (to 20:00).
Nov. 2008 Co-location Service started.
Dec. 2008 Making Jasdaq Securities Exchange, Inc. OSE's consolidated subsidiary by acquiring 76.1% of the company's shares.
Feb. 2009 Signing Memorandum of Understanding with NASDAQ OMX Group.
Remote Transaction Participant System established.
Apr. 2009 Credit rating obtained.
Jun. 2009 20th anniversary of the start of the "Nikkei 225 Options".
Jul. 2009 Listing rules for domestic mutual fund as ETF is introduced.
"Exchange FX Margin Trading (OSE-FX)" started. (Trading of "OSF-FX" was ceased on Oct. 23, 2014.)
Aug. 2009 "Simplex WTI ETF" listed.
Sep. 2009 The Jasdaq trading system was integrated to the OSE trading system.
Making Jasdaq Securities Exchange, Inc. OSE's wholly-owned subsidiary by acquiring all the shares.
Feb. 2010 "TOCOM Platinum Index linked Exchange Traded Fund" and "TOCOM Gold Futures prices linked Exchange Traded Fund" listed.
Apr. 2010 Merged with Jasdaq Securities Exchange, Inc.
History of Jasdaq Securities Exchange, Inc.
Jul. 2010 Extending evening session trading hours (to 23:30).
Aug. 2010 "NEXT FUNDS NASDAQ-100® Exchange Traded Fund" listed.
"NEXT FUNDS Dow Jones Industrial Average Exchange Traded Fund" listed.
Signing Memorandum of Understanding with Shenzhen Stock Exchange (SZSE).
Sep. 2010 Signing Memorandum of Understanding with Korea Exchange (KRX).
Oct. 2010 Started our operation of the new "JASDAQ", the integrated market of "Hercules", "JASDAQ" and "NEO".
Starting the calculation and publication of "JASDAQ TOP-20".
Dec. 2010 Launched Analyst Report Platform Service.
"JASDAQ-TOP20 ETF" listed.
Feb. 2011 New derivatives trading system "J-GATE" launched.
Apr. 2011 Signing Memorandum of Understanding with Bombay Stock Exchange (BSE).
Jul. 2011 Night session trading (extending index futures/ options trading hours to 3:00 on the next day) started.
Signing Strategic Partnership with CME Group.
Nov. 2011 Extending cash trading hours.
Feb. 2012 Launched "Nikkei 225 VI Futures".
Apr. 2012 "Nikkei 225 Leveraged Index" listed.
"Nikkei 225 Inverse Index" listed.
May 2012 Launched "OSE DJIA Futures".