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JPX group companies undertake various initiatives and disseminate information with the aim of providing the most attractive markets to all users.
Every month, we showcase the highlights of these efforts in short and concise summaries just for you.
OSE is hosting JPX Kitahama Festa 2019, which marks the fifth installment of this annual event. The event features a number of attractions such as seminars by experts, lectures on the basics of stocks and derivatives, economics lectures for parents and children, adorned Tanabata bamboo trees and panel displays outlining the trajectory from conceptualization to completion of the monument "A GRAIN OF LIGHT" designed by renowned architect Tadao Ando. The event is a great opportunity for a wide range of visitors to study and enjoy.
Students of nearby elementary schools, kindergartens, and visitors at OSE tied over 1,600 tanzaku (short strips of fancy paper with wishes written on them) onto the annual Tanabata trees. After the Tanabata event ended, the tanzaku were ceremoniously burnt at Hatamono Shrine (located in Katano city, Osaka prefecture), which is a practice that is part of the Tanabata folklore.
OSE performed Proof of Concept (PoC) testing for Derivatives Trading Information (Order/Trade Date, System Stats Data) from March 2019. Based on the feedback from the PoC testing, OSE decided to launch a new paid service titled "Alternative Data Service" to provide various data from July 1, 2019. OSE continues to strive to develop highly convenient markets for investors by providing market information.
From July 16, 2019, a shortened stock settlement cycle (T+2) was implemented. This means that settlement of stock trades was shortened by a business day and the delivery date will now be the second business day after the trading day. TSE and JSCC continue to make efforts to enhance further safety and efficiency of security settlement system in Japan.
On July 30, JPX released its consolidated earnings report for Q1 of FY2019. Operating revenue was down JPY 0.4 billion (-1.7%) year on year to JPY 29 billion due mainly to a decrease in cash equities trading value. Operating expenses were up JPY 0.7 billion (+5.6%) year on year to JPY 13.6 billion due mainly to an increase in depreciation and amortization in connection with system revamping. As a result, operating income decreased by JPY 1.1 billion (-6.7%) to JPY 16.2 billion with net income (attributable to owners of the parent company) down JPY 0.9 billion (-7.8%) to JPY 10.7 billion. Thus, both revenue and profit decreased compared to the previous year.
OSE will implement the replacement of the present derivatives trading system (J-GATE), with the primary concept being "Launch Timely" to realize timely addition of products and functionalities and to contribute to business growth. In line with that, OSE has selected Nasdaq Technology AB and NTT DATA Corporation as the development vendors.
This replacement of the next generation derivatives trading system aims to build a market platform aligned with environmental changes and needs, such that JPX may "Pursue 'the shape of the market' toward the next generation", one of the core strategies of the 3rd Medium-Term Management Plan. OSE will advance the project, with the support of all parties concerned with the market, toward a go-live in the Q3 of FY2021.
Since it concluded a basic agreement with Tokyo Commodity Exchange, Inc. (TOCOM) on March 28, JPX has conducted due diligence and made discussions on a TOB price with TOCOM. As a result, on July 30, it announced commencement of a tender offer for shares of TOCOM. JPX plans to commence the tender offer on August 1 and complete the business combination as of October 1. For implementing the tender offer, as of July 30, JPX entered into an agreement with TOCOM on a business combination stipulating the policy, organizational structure, and other related matters after the completion of the business combination.