JPX Monthly Headlines

In 2018, 97 companies were newly listed on TSE. The number increased by 4 from a year earlier. We believe that the IPO pipeline still remains strong. One of the unique characteristics of IPO this year is that there was a large increase of the number of IPOs at Mothers from 49 last year to 63, which accounts for 60% of the total. The number reached a record high since the launch of Mothers.
This year, many enterprises with high growth potential that match the concept of Mothers listed their shares. In 2019, as we actively engage in support of listing efforts across Japan, we remain committed to promoting and raising the quality of future IPOs while counting on the cooperation of underwriters, auditors, regional financial institutions, and all those involved in the IPO industry.

The guidebooks were revised for JPX-Nikkei Index 400 and JPX-Nikkei Mid and Small Cap Index, which are jointly calculated by TSE and Nikkei. For both indices, a system in which issues with higher ROEs tend to be selected as new constituents will be introduced as well as scores based on qualitative factors will be added to companies that disclose Corporate Governance Report in English. For JPX-Nikkei Mid and Small Cap Index, the criteria used for determining qualitative scores for appointment of independent outside directors will be tightened. The revisions will go into effect on the next periodic review in August 2019. We will continue advancing initiatives to promote these indices to more investors.

In order to review the current cash equity market structure and how the market should be structured in the future, TSE established the "Advisory Group to Review the TSE Cash Equity Market Structure" in October 2018 and has been holding discussion meetings with the advisory group. Based on the discussions held by this advisory group, TSE has published a consultation paper that outlines the discussion points for further review of the market structure. TSE invites comments from a wide range of stakeholders. (Comment Period: Nov. 21, 2018 to Jan. 31, 2019) After the period, TSE will continue meeting with the advisory group and further review the optimal market structure to meet the needs of listed companies and investors.

JPX and its group companies held ceremonies at TSE and OSE on Dec. 28, the last trading day of 2018. Among the many in attendance were market participants and the public. The special guest for 2018 at TSE was soccer coach Mr. Akira Nishino. With the highest number of wins in his career as a coach in the J1 League (top division of the Japan Professional Football League), he won many titles including Emperor's Cups. Mr. Nishino rang the bell, and then all attendees and spectators joined in a ceremonial hand-clapping to close the year. Mr. Nishino also gave a talk in addition to his special appearance at the ceremony, livening up both events. (Top: TSE, Bottom: OSE)