Close
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.
The demand for IPOs remains strong, with 102 new companies listing on TSE in 2020. The Mothers market accounted for approximately 60% of all new listings with 63 IPOs. This year saw many start-ups with high growth potential that matched the Mothers market concept, go public. The professional investor-oriented TOKYO PRO Market also welcomed 10 companies this year, reaching a record fourth consecutive year. TSE will continue to make efforts to encourage and ensure the quality of IPOs in 2021, through cooperation and collaboration with underwriters, audit firms, local financial institutions and others involved in the IPO process, while actively promoting our listing activities across the country.
JPX and Japan Securities Depository Center, Inc. (JASDEC) issued a report on the results of their pilot test project of a DLT information sharing platform in the field of securities post-trade, jointly conducted by NEC Corporation.
The pilot test project, which aimed to eliminate inefficiencies in securities post-trade through the construction of an information sharing platform, focused on identifying challenges facing the industry and investigating how they may be resolved in the future. With 24 participating companies, the project constructed a test environment with some of the functions integral to the resolution of the challenges. JPX will continue to contribute to the resolution of industry-wide challenges through these efforts.
OSE and TOCOM have currently been developing the next-generation derivatives trading system (J-GATE3.0) to increase market liquidity and further improve reliability and convenience for investors, trading participants, and other market users. We announced that the scheduled go-live date will be September 21, 2021. (The date is subject to preparations progressing as planned.) We remain committed to developing the project with the cooperation of market participants.
As seen in the publication of the "Overview of Market Structure Review - Outline of the New Market Segments" in February 2020, with the aim of providing an attractive cash equity market which supports sustainable growth and mid-to long-term corporate value improvement of listed companies that further attracts diverse investors at home and abroad, from April 2022, TSE is planning to restructure the cash equity market by reorganizing the current market segments into three new market segments: Standard Market, Prime Market and Growth Market.
In order to realize a smooth transition to the new market segments, TSE has published a "Development of Listing Rules for Cash Equity Market Restructuring (second set of revisions)" pertaining to listing requirements of the new market segments and transition procedures for listed companies.
In view of the upcoming market restructure, Tokyo Stock Exchange, Inc. (TSE) has today started to gather opinions through an Index Consultation in relation to a planned revisions of TOPIX.
TSE will revise the current market structure in April 2022, abolishing the current market segments such as the 1st Section and restructuring the market into new segments: the Prime Market, the Standard Market, and the Growth Market. In connection with this, TSE will carry out revisions of stock price indices which are based on the current market segments, including the Tokyo Stock Price Index (hereinafter "TOPIX").
TOPIX in particular has been widely used for over 50 years as an indicator for Japanese economic trends, a benchmark for asset management, and an underlying index for index investment. With this in mind, TSE will implement the TOPIX revisions in stages, having fully considered the issue of continuity as well as the impact on the market.
This matter is subject to the Index Consultation until February 26, 2021.
On December 30, JPX and its group companies held market closing ceremonies in Tokyo and Osaka to mark the last trading day of 2020. This year, each venue implemented Covid-19 infection prevention measures such as limiting the number of visitors attending and ensuring social distancing. In Tokyo, 3 representatives from newly listed companies and 2 representatives from market participants rang the bell, and afterwards attendees joined in a customary hand-clapping to close out the year.