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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.
TSE commenced three Proof of Concept (PoC) testing projects in areas that are expected to contribute to the development of the securities market, as indicated below, in order to verify usability and technical issues.
- PoC Testing on Small/Medium Cap Stock Analyst Reports Using Alternative Data (Oct. 7)
Together with Nowcast Inc., TSE launched the PoC testing in order to ensure information disclosure to overseas institutional investors and to allow for cross-referencing across the globe. Nowcast Inc. will write the reports, taking advantage of natural language processing and the knowledge of analysts, to compose a large number of reports that would not be possible to accomplish with only ordinary humans. With this, we aim to resolve the problem of "qualitative and quantitative lack of English information on small/medium cap stocks".
- PoC Testing on Distribution of Transcripts of Listed Company Investor-oriented Events (Oct. 24)
In this PoC testing, SCRIPTS Asia Inc. creates transcripts of public companies' investor-oriented events for distribution to investors. Through the PoC, we will verify whether the distribution of such transcripts will promote increased quality of information gathering by investors and reduction in the information gap between domestic and overseas investors.
- Limited Public PoC Testing for Margin Transaction and Short Selling Data (Oct. 24)
In this PoC testing, TSE provides samples of TSE internal margin transaction and short selling data (trade data). Sample data are composed of daily trading value and trading volume by issue, which are aggregated by using flags set at the time of order placement by investors.
We will verify the possible use of said data for various purposes such as sophistication of risk and credit management.
To mark the publication of a Japanese translation of the Sustainability Accounting Standards Board (SASB) and Climate Disclosure Standards Board's (CDSB) "TCFD Implementation Guide", JPX held a seminar to introduce and explain the guide to its listed companies. Speakers from SASB and CDSB, as well as the Guide translator Ernst & Young ShinNihon LLC, explained the background of the Guide and how it can be helpful to Japanese companies in particular. The successful seminar was attended by around 270 ESG professionals, persons in charge of corporate disclosure, and others from Japanese listed companies.
TSE is now beginning to examine adding a request for quote (RFQ) function for ETF trading in response to the needs of institutional investors handling large transactions. The RFQ function would enable institutional investors to communicate with a large number of market makers regarding the issues and quantities that they would like to buy or sell, as well as to buy and sell at a price indicated solely for the investor. This function is expected to allow investors to trade ETFs more smoothly. TSE will develop some components of the RFQ function on a trial basis for use by market participants and consider the possibility of full-scale introduction of said function.
TSE launched a new website directed at domestic retail investors, where they can go through a simulation on what kind of impact starting to invest at a certain point in time might have had on their current assets. The site is available in Japanese under the title "Jinsei yarinaoshi taiken (Experience redoing your life)" with the idea of visualizing a life that incorporates investment.
One of the reasons that people feel investing is difficult and shy away from it is due to price changes of assets invested. It is indeed challenging to predict fluctuations in stock prices, but the simulator allows users to better understand such fluctuations. Two methods of investing, lump-sum and installment, are applied to compare movements in past stock prices; and, the significance of both time and asset diversification also becomes evident when users experiment with changing the start dates and asset classes in the simulator.
TSE hopes this website contributes to improving financial literacy and that those engaged in investment education will make use of the simulator in their activities directed at less experienced investors.
On Oct.30, JPX released its earnings report of the consolidated financial results for the six months ended Sep. 30, 2019. Operating revenue was down JPY 1.2 billion (-2.2%) year on year to JPY 57.9 billion due mainly to a decrease in cash equity trading value. Operating expenses were up JPY 1.2 billion (+4.9%) year on year to JPY 27.4 billion due mainly to an increase in systems-related costs. As a result, operating income decreased JPY 2.4 billion (-7.2%) to JPY 31.8 billion with net income (attributable to owners of the parent company) down JPY 2.3 billion (-9.8%) to JPY 21.5 billion. Thus, both revenue and income decreased compared to the previous year.